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Pricing and green decision-making in a three-echelon supply chain considering fairness concern with the participation of green logistics

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Abstract

In addition to green product design, this paper introduces green logistics into a green supply chain, and studies the supply chain system composed of a manufacturer producing green products, a 3PL supplier and a retailer from the perspective of fairness. Through the construction of the game models, this paper studies the pricing, green decision-making and the supply chain members’ profits, and discusses the impact of the retailer’s fairness concern on the decision-making and performance of members. Finally, in order to improve supply chain performance under fairness concern, two contracts are designed: 3PL green cost sharing contract and combination contract. It is found that the retailer with fairness concern sets lower retail price, the manufacturer chooses lower product greenness and wholesale price, and 3PL green level is not related to fairness concern. The retailer’s fairness concern is not conducive to the manufacturer, the 3PL supplier and the whole supply chain, but beneficial to the retailer. In addition, both these two contracts improve the performance of the supply chain and get more environmental benefits. Compared with the 3PL green cost sharing contract, the combination contract plays a more significant role in making more profit for the 3PL supplier and more utility for the retailer.

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Funding

This study is supported by National Natural Science Foundation of China (nos. 71671079, 71361018).

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Authors and Affiliations

  1. School of Traffic and Transportation, Lanzhou Jiaotong University, Lanzhou, China

    Shijuan Wang, Shuqin Zhao, Wenxia Li & Linzhong Liu

  2. School of Information Engineering, Lanzhou University of Finance and Economics, Lanzhou, China

    Shijuan Wang

  3. Chinese Research Academy of Environmental Sciences Tianjin Branch, Tianjin, China

    Guangwei Wang

Authors
  1. Shijuan Wang
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  2. Guangwei Wang
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Correspondence to Shijuan Wang.

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Wang, S., Wang, G., Zhao, S. et al. Pricing and green decision-making in a three-echelon supply chain considering fairness concern with the participation of green logistics. Evol. Intel. 16, 1285–1307 (2023). https://doi.org/10.1007/s12065-022-00737-8

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  • DOI: https://doi.org/10.1007/s12065-022-00737-8

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