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Consumer Environmental Awareness and Coordination in Closed-Loop Supply Chain

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DOI: 10.4236/ojbm.2016.43044    1,524 Downloads   2,163 Views Citations
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ABSTRACT

Considering the impact of products’ eco-friendly level on demand, a two-stage closed-loop supply chain composed by a single manufacturer and a single retailer is constructed. Under both decentralized and centralized decision-making models, the paper deeply researches into the difference of supply chain system in economic benefits, environmental protection and social benefits, and a revenue sharing contract is applied to realize coordination between the manufacture and the retailer. The results show that the system of supply chain in centralized decision-making model is more efficient than that in decentralized decision-making model in economic benefits, environmental protection and social benefits, and the revenue sharing contract can coordinate the supply chain very well. Under two decision-making models, the products’ eco-friendly level, return rate and profit of the node enterprise are positively correlated to the consumer environmental awareness, and negatively correlated to the price sensitivity as well as the cost parameter of green investment; the price is positively correlated to the scaling parameter of collecting and handling; return rate and profit of the node enterprise are negatively correlated, and products’ eco-friendly level is irrelevant.

Cite this paper

Xu, Y. and Xie, H. (2016) Consumer Environmental Awareness and Coordination in Closed-Loop Supply Chain. Open Journal of Business and Management, 4, 427-438. doi: 10.4236/ojbm.2016.43044.

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