The credit strategy of a green supply chain based on capital constraints

• Published in: Journal of cleaner production 2019-07, Vol.224, p.930-939
• Main Authors: Yang, Haoxiong, Miao, Liye, Zhao, Chuan
• Format: Article
• Language: English
• Subjects: Capital-limited; Green supply chain; Revenue sharing contract; Trade credit
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2019.03.214

Research on the credit strategy of green supply chain is getting more and more attention. However, there are only few quantitative studies regarding it. In this paper, we first considered a two-echelon green supply chain with one manufacturer and two capital-limited retailers, then the impact of credit strategy on the green supply chain performance was analyzed. Three scenarios of credit strategy were examined respectively: the manufacturer provides two retailers with trade credit at the same time; the manufacturer provides one of the retailers with trade credit; and the retailer using external financing to return to the supply chain. A revenue sharing contract had also been established to coordinate the profits allocation in the green supply chain. Furthermore, the green level of the green products was studied as well, and we also considered the consumer sensitivity to the green product prices and green level. Finally, we modeled and identified the conditions under which the manufacturer may prefer to adopt. The related conclusions could provide reference for the green supply chain enterprises to formulate corresponding management strategies. [Display omitted]