Coordination mechanism for a remanufacturing supply chain based on consumer green preferences

ABSTRACT

Against the background of diversified consumer green preferences in the market, this paper constructs a remanufacturing supply chain profit model consisting of a single retailer and a single manufacturer. The Stackelberg game method is adopted to analyse the optimal pricing problem in both decentralised and centralised decision models, as well as a revenue-sharing contract model that consider consumers with different green preferences. The results show that an increase in the proportion of green consumers and consumer acceptance of remanufactured products have a positive impact on the profits of manufacturers, retailers and the entire supply chains. The revenue-sharing contract can effectively coordinate manufacturer and retailer to improve the profit of both the supply chain and individuals, and these profits can reach the profit of the centralised decision model. Finally, some coordination suggestions are provided.

KEYWORDS:

• Coordination
• remanufacturing supply chain
• revenue-sharing contract
• green preference

Acknowledgement

This work was supported by National Natural Science Foundation of China: [Grant Numbers 72102029 and 71962027]; the Fundamental Research Funds for the Central Universities: [Grant Number DUT21RW102].

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Li Cui

Li Cui is an Associate Professor in School of Business, Dalian University of Technology. Her research interests include eco-innovation, sustainable operations and green supply chain management.

Xiaoyue Jiang

Xiaoyue Jiang is a Master Degree Candidate in School of Business, Dalian University of Technology. Her research interest is in the fields of sustainable operations and green supply chain management.

Lu Zhang

Lu Zhang is a Professor in School of Economics and Management at Inner Mongolia University of Technology. His research interest is in the fields of supply chain collaboration management and enterprise strategic management.

Pan Zhang

Pan Zhang is an Associate Professor in Environmental Management at the China Business Executives Academy, Dalian. She got her PhD degree from Dalian University of Technology. Her research interests include sustainable supply chain management and corporate social responsibility.

Jian Mou

Jian Mou is an Associate professor in the School of Business, Pusan National University, South Korea. His research interests include big data analysis, social media, trust and risk issues in e-service, and information management.