Research On Decision Of Green Supply Chain Considering Channel Power Structure

The rapid development of industrialization and global economic integration has made the problems of resource crisis and environmental pollution be more serious.People of all regions in the world have recognized the importance of protecting the environment.In this context,green supply chain management emerges at the historic moment,which connects two aspects of environmental protection and supply chain management.At the same time,with the improvement of consumers'awareness of environmental protection and the establishment of the concept of green consumption,people prefer to buy green products.So the members of supply chain are facing with increasing the green level of products,reducing environmental pollution and achieving sustainable development.Facing with the challenge of market,members of green supply chain need to pay attention to channels or channel power structures,while continuously improving the products'green degree to make them fit for consumers.Because retailers are developing rapidly,it is possible for appearing some very large company in the market.This has changed the power structure of green supply chain to a certain extent.Some larger retailers have begun to have strong power,or even retailers have greater channel power than manufacturers.Therefore,this paper studies the decision-making of green supply chain based on the channel power structures.Firstly,in a green supply chain consisting of a manufacturer and a retailer,the impact of government subsidies for Green Research and Development and channel power structure on equilibrium results is studied.By studying the channel power structures which are Nash supply chain,manufacturer-leader and retailer-leader,we establish three models of the manufacturer or the retailer Stackelberg and Nash game.Results shows that under the three channel power structures,enterprises would adopt the strategy of "greener and higher pricing" when the green effect is higher.A higher green cost factor is not conducive to improve the green degree and raise the price.For the manufacture,channel power structure would have an impact on creating a green image.The green level of products is always the lowest in the manufacturer-leader.In order to improve the green level,it is necessary to adjust the green cost factor and government' subsidy relatively.When the factor of government subsidy is large,the green level of products can be the highest in the retailer-leader.Otherwise,the green level of products can be the highest under the channel of manufacturer and retailer having equal power.Mostly,the manufacturer has economic synergy to act as leader.But for retailer,it is the best when she dominates supply chain.Secondly,the benchmark model is extended and decision-making models for a manufacturer and two competing retailers is established,considering that the making power of two retailers may be equal or unequal.We analyze the impact of channel power structure,competition level,green effect and green investment efficiency on the decisions.The results show that the green level is the highest when the manufacturer and two retailers have equal power,the higher when the manufacturer dominates-two retailers'power being equal,the lowest when the manufacturer dominates-two retailers' power being unequal.This means that in competitive environment,the unbalanced power leads to a decline of the green level.In order to gain more market share and revenue,the week retailer will use her "post-movement advantage" to set a lower price when the manufacturer dominates-two retailers' power being unequal.So,the week retailer has an advantage in the competitive market,resulting in more demands and profits.Unequal power leads to intensify price competition between two retailers.The manufacture's profit is the most,so the power structure is the best when the manufacturer dominates-two retailers' power being equal.The profits of retailer and supply chain system are related to the value of system parameters.Thirdly,a green product-service supply chain consisting of a manufacturer and a retailer is established,in which a manufacturer or retailer can provide unilateral service to consumers,or both parties can provide service simultaneously.The effects of different service provider and different channel power structures on decisions of green level,pricing,service level and the performance of companies are discussed.The results show that:under the three power structures which are Nash supply chain,manufacturer-leader,retailer-leader,the price and the green degree and service level ought to be higher on the service alliance.That is,commercial strategy of supply chain will be "higher pricing,greener and higher service level" in the case of service alliance.If the parameters of system meet a certain range,all members of supply chain have economic incentive for service alliance when the manufacturer and the retailer have equal power.Under the power structures when the manufacturer or the retailer dominates,dominant companies always have economic incentive for service alliance,and followers will agree to service alliance only with a certain extent.Finally,the relatively high recyclability makes the green products be different from the ordinary.In order to study the effect of channel power structure on decisions of products'green degree,collection rate and the performance when the green level is endogenous and exogenesis,three decisions models are established which are Nash supply chain,manufacturer-leader and retailer-leader.The results show that when the green level is endogenous,the green level is the lowest in the manufacturer-leader.The cost shifting caused by wholesale price makes retail price also be related to system parameters such as the green cost factor and recycling scale parameter and so on.The collection rate is highest under the Nash supply chain.It would be the most profitable for the manufacturer in the manufacturer-leader or the retailer-leader.The retailer's profit and the channel power structure have positive correlation.The performance of system is the worst in the manufacturer-leader.When the green degree is exogenesis,the wholesale price and the channel power structure have positive correlation.The retail price is the lowest in Nash supply chain,while is the highest in the manufacturer-leader.If there is power unbalance between a manufacturer and a retailer,the recycling effort would go down.The collection rate is the highest in Nash supply chain.The decisions of pricing and collection rate and the performance are at a disadvantage when there is a leader in the supply chain.