Research on Two-Echelon Green Supply Chain Decision under Government Subsidy

Shilin  Zhan; Zhengang  Shu; Hao  Jiang

doi:10.4236/ajibm.2018.83032

Shilin Zhan, Zhengang Shu, Hao Jiang

Abstract: With the background of government subsidies and increasing consumer environmental awareness, this article establishes a two-echelon supply chain model of manufacturer and retailer. Based on this model, this article analyzes the decision-making problems of manufacturer and retailer under both decentralized and centralized decision modes, and the impact of consumer green sensitivity on product pricing, green degree and other decisions. The results show that government subsidies, higher consumer green sensitivities are conducive to green product promotion and members of decentralized decision supply chain, but higher consumer green sensitivity will reduce the overall supply chain profit in a centralized decision mode. Finally, this paper discusses the design of supply chain contract mechanism in decentralized decision mode to achieve supply chain coordination.

Keywords: Green Product, Consumer Green Sensitivity, Game Decision, Supply Chain Coordination

Cite this paper: Zhan, S. , Shu, Z. and Jiang, H. (2018) Research on Two-Echelon Green Supply Chain Decision under Government Subsidy. American Journal of Industrial and Business Management, 8, 487-495. doi: 10.4236/ajibm.2018.83032.

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