Journal of Industrial Engineering Research in Production Systems

Journal of Industrial Engineering Research in Production Systems

Two-Echelon Supply Chain Coordination Considering Health Product Donation as a Social Responsibility with Cost-Sharing and Revenue-Sharing Contracts

Document Type : Research Paper

Authors
Parsa Leilaparast 1
Gholamian Mogammad Reza 2
Maryam Norouzi 3
1 Master Student of industrial engineering, Department of Logistics and Supply chain management, Industrial Engineering faculty, Iran University of Science and Technology (IUST), Tehran, Iran
2 Associate Professor of industrial engineering, Department of Logistics and Supply chain management, Industrial Engineering faculty, Iran University of Science and Technology (IUST), Tehran, Iran
3 Phd Candidate of industrial engineering, Department of Logistics and Supply chain management, Industrial Engineering faculty, Iran University of Science and Technology (IUST), Tehran, Iran
10.22084/ier.2023.27472.2118
Abstract
In today's world, due to the increase in competition between organizations and the increase in environmental and social concerns, sustainable supply chain management is a competitive advantage for organizations. Sustainable supply chain management is an approach in supply chain management with the aim to consider economic, environmental and social issues together. In this study, we consider two-echelon supply chain that consists both manufacturer and retailer in which the manufacturer decides on green quality of the product and level of health products donation as a social responsibility, and retailer decides on the selling price of the product to the end customers. We assumed that the customer has a social and environmental awareness and the demand is a function of the selling price, level of donation and green quality of the product. Generally, with an increase in the level of donation and the greenness of the product, the demand increases, and with an increase in the selling price of the product, the demand decreases. The results show that the coordination model in this sustainable supply chain is an appropriate alternative in comparison with the other models.
Keywords
Sustainable Supply Chain
Supply Chain Coordination
Revenue-Sharing Contract
Cost-Sharing Contract
Social Responsibility
Pricing
Subjects
  • Ghosh, Prasanta Kumar, Amalesh Kumar Manna, Jayanta Kumar Dey, and Samarjit Kar. "Supply chain coordination model for green product with different payment strategies: A game theoretic approach." Journal of Cleaner Production 290 (2021): 125734. https://doi.org/10.1016/j.jclepro.2020.125734
  • Barari, Sikhar, Gaurav Agarwal, WJ Chris Zhang, Biswajit Mahanty, and M. K. Tiwari. "A decision framework for the analysis of green supply chain contracts: An evolutionary game approach." Expert systems with applications 39, no. 3 (2012): 2965-2976. https://doi.org/10.1016/j.eswa.2011.08.158
  • Tseng, Ming-Lang, Md Shamimul Islam, Noorliza Karia, Firdaus Ahmad Fauzi, and Samina Afrin. "A literature review on green supply chain management: Trends and future challenges." Resources, Conservation and Recycling 141 (2019): 145-162. https://doi.org/10.1016/j.resconrec.2018.10.009
  • Darbari, Jyoti Dhingra, Devika Kannan, Vernika Agarwal, and P. C. Jha. "Fuzzy criteria programming approach for optimising the TBL performance of closed loop supply chain network design problem." Annals of operations research 273, no. 1 (2019): 693-738. https://doi.org/10.1007/s10479-017-2701-2
  • Kumar, R. Ganesh, R. Murali, and S. Anand. "Effect of internal supply chain drivers on green supply chain management attributes." International Journal of Business Performance and Supply Chain Modelling 10, no. 4 (2019): 323-338. https://doi.org/10.1504/IJBPSCM.2019.105702
  • Jaber, Mohamad Y., Christoph H. Glock, and Ahmed MA El Saadany. "Supply chain coordination with emissions reduction incentives." International Journal of Production Research 51, no. 1 (2013): 69-82. https://doi.org/10.1080/00207543.2011.651656
  • Du, Shaofu, Jiaang Zhu, Huifang Jiao, and Wuyi Ye. "Game-theoretical analysis for supply chain with consumer preference to low carbon." International Journal of Production Research 53, no. 12 (2015): 3753-3768. https://doi.org/10.1080/00207543.2014.988888
  • Kannan, Devika, Hassan Mina, Saeede Nosrati-Abarghooee, and Ghasem Khosrojerdi. "Sustainable circular supplier selection: A novel hybrid approach." Science of the Total Environment 722 (2020): 137936. https://doi.org/10.1016/j.scitotenv.2020.137936
  • Parsaeifar, Sahar, Ali Bozorgi-Amiri, Ali Naimi-Sadigh, and Mohamad Sadegh Sangari. "A game theoretical for coordination of pricing, recycling, and green product decisions in the supply chain." Journal of cleaner production 226 (2019): 37-49. https://doi.org/10.1016/j.jclepro.2019.03.343
  • Simatupang, Togar M., Alan C. Wright, and Ramaswami Sridharan. "2002): The knowledge of coordination for supply chain integration." In In: Business Process Management Journal. https://doi.org/10.1108/14637150210428989
  • Bart, Nelly, Tatyana Chernonog, and Tal Avinadav. "Revenue-sharing contracts in supply chains: a comprehensive literature review." International Journal of Production Research 59, no. 21 (2021): 6633-6658. https://doi.org/10.1080/00207543.2020.1821929
  • Zhang, Ranran, Jinjin Liu, and Yu Qian. "Wholesale-price vs cost-sharing contracts in a green supply chain with reference price effect under different power structures." Kybernetes (2022). https://doi.org/10.1108/K-11-2021-1096
  • Wang, Yu, and Guisheng Hou. "A duopoly game with heterogeneous green supply chains in optimal price and market stability with consumer green preference." Journal of Cleaner Production 255 (2020): 120161. https://doi.org/10.1016/j.jclepro.2020.120161
  • Louly, Mohamed-Aly, Alexandre Dolgui, and Faicel Hnaien. "Supply planning for single-level assembly system with stochastic component delivery times and service-level constraint." International Journal of Production Economics 115, no. 1 (2008): 236-247. https://doi.org/10.1016/j.ijpe.2008.06.005
  • Rao, Congjun, Mark Goh, Yong Zhao, and Junjun Zheng. "Location selection of city logistics centers under sustainability." Transportation Research Part D: Transport and Environment 36 (2015): 29-44.  https://doi.org/10.1016/j.trd.2015.02.008
  • Rao, Congjun, Hui Lin, and Ming Liu. "Design of comprehensive evaluation index system for P2P credit risk of “three rural” borrowers." Soft Computing 24, no. 15 (2020): 11493-11509. https://doi.org/10.1007/s00500-019-04613-z
  • Beemsterboer, Bart, Martin Land, and Ruud Teunter. "Flexible lot sizing in hybrid make-to-order/make-to-stock production planning." European Journal of Operational Research 260, no. 3 (2017): 1014-1023. https://doi.org/10.1016/j.ejor.2017.01.015
  • Moktadir, Md Abdul, Syed Mithun Ali, Charbel Jose Chiappetta Jabbour, Ananna Paul, Sobur Ahmed, Razia Sultana, and Towfique Rahman. "Key factors for energy-efficient supply chains: Implications for energy policy in emerging economies." Energy 189 (2019): 116129. https://doi.org/10.1016/j.energy.2019.116129
  • Zhang, Xiang, and HM Abaid Ullah Yousaf. "Green supply chain coordination considering government intervention, green investment, and customer green preferences in the petroleum industry." Journal of Cleaner Production 246 (2020): 118984. https://doi.org/10.1016/j.jclepro.2019.118984
  • Govindan, Kannan, A. Rajeev, Sidhartha S. Padhi, and Rupesh K. Pati. "Supply chain sustainability and performance of firms: A meta-analysis of the literature." Transportation Research Part E: Logistics and Transportation Review 137 (2020): 101923. https://doi.org/10.1016/j.tre.2020.101923
  • Govindan, Kannan, Hassan Mina, Ali Esmaeili, and Seyed Mohammad Gholami-Zanjani. "An integrated hybrid approach for circular supplier selection and closed loop supply chain network design under uncertainty." Journal of Cleaner Production 242 (2020): 118317. https://doi.org/10.1016/j.jclepro.2019.118317
  • Fasan, Marco, Elise Soerger Zaro, Claudio Soerger Zaro, Barbara Porco, and Riccardo Tiscini. "An empirical analysis: Did green supply chain management alleviate the effects of COVID-19?." Business Strategy and the Environment 30, no. 5 (2021): 2702-2712. https://doi.org/10.1002/bse.2772
  • Song, Hongfang, Hongrui Chu, Haodi Yue, and Yahong Chen. "Green supply chain coordination with substitutable products under cost sharing contract." Procedia Computer Science 199 (2022): 1112-1119. https://doi.org/10.1016/j.procs.2022.01.141
  • Li, Ping, Congjun Rao, Mark Goh, and Zuqiao Yang. "Pricing strategies and profit coordination under a double echelon green supply chain." Journal of cleaner production 278 (2021): 123694. https://doi.org/10.1016/j.jclepro.2020.123694
  • Govindan, Kannan, Mahesh Shaw, and Abhijit Majumdar. "Social sustainability tensions in multi-tier supply chain: A systematic literature review towards conceptual framework development." Journal of Cleaner Production 279 (2021): 123075. https://doi.org/10.1016/j.jclepro.2020.123075
  • Khan, Syed Abdul Rehman, Karim Zkik, Amine Belhadi, and Sachin S. Kamble. "Evaluating barriers and solutions for social sustainability adoption in multi-tier supply chains." International Journal of Production Research 59, no. 11 (2021): 3378-3397. https://doi.org/10.1080/00207543.2021.1876271
  • Kang, Kai, Mengzhuo Wang, and Xinfeng Luan. "Decision-making and coordination with government subsidies and fairness concerns in the poverty alleviation supply chain." Computers & Industrial Engineering 152 (2021): 107058. https://doi.org/10.1016/j.cie.2020.107058
  • Hosseini-Motlagh, Seyyed-Mahdi, Mona Jazinaninejad, and Nazanin Nami. "Coordinating a socially concerned reverse supply chain for pharmaceutical waste management considering government role." Environment, Development and Sustainability (2022): 1-26. https://doi.org/10.1007/s10668-021-01511-z
  • Xie, Kefan, Shufan Zhu, and Ping Gui. "A Game-Theoretic Approach for CSR Emergency Medical Supply Chain during COVID-19 Crisis." Sustainability 14, no. 3 (2022): 1315. https://doi.org/10.3390/su14031315
  • Tat, Roya, and Jafar Heydari. "Avoiding medicine wastes: Introducing a sustainable approach in the pharmaceutical supply chain." Journal of Cleaner Production 320 (2021): 128698. https://doi.org/10.1016/j.jclepro.2021.128698
  • Melián-Alzola, Lucía, and Josefa D. Martín-Santana. "Service quality in blood donation: satisfaction, trust and loyalty." Service Business 14, no. 1 (2020): 101-129. https://doi.org/10.1007/s11628-019-00411-7
  • نوروزی فصیح،مجتبی. و انور محمودی. "قیمت‏‌‌گذاری و تعیین درجه سبز محصول در زنجیره‌های تأمین رقیب با درنظر گرفتن دخالت دولت."نشریه پژوهش‌های مهندسی صنایع در سیستم‌های تولید، 18 (2021) 97-109. https://doi.org/10.22084/ier.2021.24189.2023
  • جعفری، حامد و محمدحسین حقیقی. "تصمیمات قیمت‌گذاری و خدمات خرده‌فروشی در زنجیره‌تأمینی شامل یک تولیدکننده و یک خرده‌فروش بااستفاده از رویکرد نظریه بازی."نشریه پژوهش‌های مهندسی صنایع در سیستم‌های تولید،19 (2022)، 125-135.  https://doi.org/10.22084/ier.2022.26216.2086
  • کافی، فرهاد و سید محمد تقی فاطمی قمی. "توسعه یک مدل جدید مبتنی بر تئوری بازی برای تحلیل توسعه تأمین‌کننده با لحاظ همکاری و رقابت همزمان در زنجیره‌تأمین."نشریه پژوهش‌های مهندسی صنایع در سیستم‌های تولید، 2 (2014)، 123-137.
  • Yang, Yang, and Guanxin Yao. "Fresh agricultural products supply chain coordination considering consumers' dual preferences under carbon cap-and-trade mechanism." Journal of Industrial and Management Optimization 19, no. 3 (2023): 2071-2090. https://doi.org/10.3934/jimo.2022032
  • Chen, Jianxin, Lin Sun, Tonghua Zhang, and Rui Hou. "Low carbon joint strategy and coordination for a dyadic supply chain with Nash bargaining fairness." Journal of Industrial and Management Optimization 19, no. 2 (2023): 1282-1309. http://dx.doi.org/10.3934/jimo.2021229

Heydari, Jafar, Kannan Govindan, and Zahra Basiri. "Balancing price and green quality in presence of consumer environmental awareness: a green supply chain coordination approach." International Journal of Production Research 59, no. 7 (2021): 1957-1975. https://doi.org/10.1080/00207543.2020.1771457

Journal of Industrial Engineering Research in Production Systems
Volume 11, Issue 22
September 2023
Pages 19-29