Abstract:

The supply chain coordination mechanism of a two-stage green supply chain composed of one supplier and one retailer is studied. Models of decentralized decision, centralized decision and revenue sharing contract are constructed, and their optimal policies are also proposed. Finally, a numerical example is given to illustrate and validate the models and conclusions. It is shown that in the green supply chain, with the raise of the green degree of the green product, the mark up rate of the green product will increase, the order quantity of the retailer will decrease, and the profits for each member will firstly decrease and then increase. In addition, the profits for each member in revenue sharing contract can be improved remarkably compared to in decentralized decision.

Key words: green supply chain, revenue sharing, green degree, green product