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

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

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

Main Subjects

References

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

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