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Simultaneous coordination of order quantity and corporate social responsibility in a two-Echelon supply chain: A combined contract approach

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  • Abbas Jokar
  • Seyyed-Mahdi Hosseini-Motlagh

Abstract

The main aim of this paper is to synthesize CSR issue into channel coordination. Accordingly, the CSR issue is studied in a manufacturer-retailer chain under two cases: (1) the manufacturer invests in CSR, and (2) the retailer invests in CSR. Each case is explored in terms of the individual profitability of supply chain (SC) members and the amount of CSR investment. Moreover, we propose a hybrid of wholesale and buyback contract to resolve the channel conflict in both cases. Additionally, a Nash bargaining model is applied to share the surplus profit between SC players. Under decentralized setting, the numerical results indicate that both cases bring almost the same results for the members regarding their profitability, but regarding the investment in the CSR issues, the M-CSR case is remarkably superior to the R-CSR case. Moreover, the Nash bargaining model provides a win-win situation for both SC members in each case.

Suggested Citation

  • Abbas Jokar & Seyyed-Mahdi Hosseini-Motlagh, 2020. "Simultaneous coordination of order quantity and corporate social responsibility in a two-Echelon supply chain: A combined contract approach," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 71(1), pages 69-84, January.
    • Handle: RePEc:taf:tjorxx:v:71:y:2020:i:1:p:69-84
    DOI: 10.1080/01605682.2018.1524349
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    Cited by:

    1. Kumar, Patanjal & Baraiya, Rajendra & Das, Debashree & Jakhar, Suresh Kumar & Xu, Lei & Mangla, Sachin Kumar, 2021. "Social responsibility and cost-learning in dyadic supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    2. Bo Yan & Yanping Liu & Si Liu, 2023. "Corporate social responsibility in long‐term supply chain management," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 17-27, January.
    3. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    4. Yong Liu & Wenwen Ren & Qian Xu & Zhi-yang Liu, 2022. "Decision analysis of supply chains considering corporate social responsibility and government subsidy under different channel power structures," Annals of Operations Research, Springer, vol. 315(2), pages 1841-1869, August.
    5. Seyyed-Mahdi Hosseini-Motlagh & Maryam Johari & Mohammadreza Nematollahi & Parvin Pazari, 2023. "Reverse supply chain management with dual channel and collection disruptions: supply chain coordination and game theory approaches," Annals of Operations Research, Springer, vol. 324(1), pages 215-248, May.

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