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Manufacturer and retailer coordination for environmental and economic competitiveness: A power perspective

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  • Chen, Xu
  • Wang, Xiaojun
  • Chan, Hing Kai

Abstract

This study examines the role of power relationship and coordination in sustainable supply chain management. We investigate a two-echelon supply chain that consists of a manufacturer and a retailer whose Customer demand is carbon emission sensitive. Using the game-theoretic approach, we compare the equilibrium solutions under three supply chain power structures to analyse the effects of power relationship on supply chain decisions and sustainability performance. A two-part tariff contract is designed to coordinate the supply chain. The findings provide important managerial insights that can help firms develop a better understanding of power relationship and coordination in achieving sustainability goals.

Suggested Citation

  • Chen, Xu & Wang, Xiaojun & Chan, Hing Kai, 2017. "Manufacturer and retailer coordination for environmental and economic competitiveness: A power perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 268-281.
    • Handle: RePEc:eee:transe:v:97:y:2017:i:c:p:268-281
    DOI: 10.1016/j.tre.2016.11.007
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