Effects Of Retailer’ Behavior Of Information Sharing On The Decision Of Green Supply Chain

With the development of science and technology and the increasing consumption of resources,more and more enterprises are shifting their focus to the development and manufacturing of green products.Different investment that the enterprises invest on the research and development of green technology leads to different greenness level of green products,and consumers have shown preference for different greenness level of the green products in the market.In addition,because of the advance of information technology,the information transmission and sharing have played a great role in the communication between enterprises,which reduces the cost caused by information asymmetry and improves the production efficiency of enterprises.In this paper,we mainly consider the consumer preference for green products,as well as the demand uncertainty of products.Combined with the development of information technology,we then investigate the impact of the retailers’ behavior of information sharing on the decision-making and expected profits of the manufacturer and the retailer in a green supply chain,and further introduce the government involvement in green supply chain management.Firstly,this paper studies the impact of information sharing on the green product design,and then considers the retailer’s promotional efforts.Finally,we introduce two different government subsidies in this paper,and then analyze the impact of information sharing on the supply chain and the consumer surplus.In the last,we design the corresponding contracts to motivate the retailers to share information.The results show that,(i)In the DIGP supply chain,the greenness level,the wholesale price and the retail price will increase if the retailer shares the optimistic demand information;While in the MIGP supply chain,the greenness level does not change and the wholesale price and the retail price increase if the retailer shares the optimistic demand information.(ii)The retailer’s behavior of information sharing benefits the manufacturer,while hurts herself.The expected profits of both of them increase in the accuracy of prediction information.(iii)We design two incentive information sharing strategies for the case considering retailers’ promotional efforts,of which the strategy of co-operative green marketing can effectively improve the greenness level and retailers’ promotional efforts,but it will hurt the profit of supply chain.The strategy of price-off promotion can not only improve the greenness level and retailers’ promotion efforts,but also increase the expected profits of the supply chain.(iv)Regardless of whether the government subsidies the retail price or the manufacturing cost,the information sharing results in a loss of consumer surplus,and the expected consumer surplus are respectively the same with and without information sharing under two kinds of subsidies.But the government subsidies can always benefit the manufacturers,the retailers and the consumer surplus.In conclusion,the behavior of information sharing can not only change the decisions of manufacturer,but also change the decisions of retailer herself.The two pricing contracts designed in this paper can not only increase the greenness level to the centralized case,but also improve the expected profits of manufacturers and retailers,which are beneficial to both the manufacturer and the retailer.In addition,the two-part pricing contract can always increase consumer surplus.