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Study on Benefit Coordination of Supply Chain Network Based on Green Development
1School of Business, Jiangnan University, Wuxi 214122, China. wo.a17@foxmail.com.
Summary
This study explores supply chain network coordination using game theory, finding that green contracts enhance profitability and sustainability. However, dominant manufacturers increasing logistics network penalties can paradoxically decrease profits and green performance.
Area of Science:
- Operations Research
- Supply Chain Management
- Environmental Economics
Background:
- Supply chain networks face challenges in coordinating business and logistics flows.
- Green development and contract performance are critical for sustainability.
- Game theory provides a framework for analyzing decision-making in competitive environments.
Purpose of the Study:
- To develop a collaborative benefit coordination model for supply chain networks.
- To analyze the impact of manufacturer behavior on network profitability and green index.
- To investigate the effects of green contracts versus speculative behavior on supply chain performance.
Main Methods:
- Application of Stackelberg's master-slave game theory.
- Incorporation of green index decision-making conditions.
- Construction of a collaborative benefit coordination model.
- Numerical simulation for validation.
Main Results:
- Fulfilling green contracts improves supply chain profitability and sustainability.
- Increased cost-sharing or penalties by manufacturers for the logistics network reduces its profit and green index.
- Increased cost-sharing or penalties for suppliers enhances the logistics network's profitability and green index.
Conclusions:
- Green contracts are beneficial for supply chain network performance.
- Manufacturer strategies regarding cost-sharing and penalties significantly impact network outcomes.
- Optimizing coordination mechanisms is crucial for achieving both economic and environmental goals in supply chains.
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