Low-carbon strategies in dual-channel supply chain under risk aversion

Tao Li; Xin Xu; Kun Zhao; Chao Ma; Juan LG Guirao; Huatao Chen; Tao Li; Xin Xu; Kun Zhao; Chao Ma; Juan LG Guirao; Huatao Chen

doi:10.3934/mbe.2022223

Mathematical Biosciences and Engineering

2022, Volume 19, Issue 5: 4765-4793. doi: 10.3934/mbe.2022223

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Research article Special Issues

Low-carbon strategies in dual-channel supply chain under risk aversion

1.
School of Management, Shandong University of Technology, Zibo 255000, China
2.
Beijing Electro-mechanical Engineering Institute, Beijing 100074, China
3.
Hubei Key Laboratory of Power System Design and Test for Electrical Vehicle, Hubei University of Arts and Science, Xiangyang 441053, China
4.
School of Automobile and Traffic Engineering, Hubei University of Arts and Sciences, Xiangyang 441053, China
5.
Department of Applied Mathematics and Statistics, Technical University of Cartagena, Hospital de Marina, Cartagena 30203, Spain
6.
Department of Mathematics, Faculty of Science, King Abdulaziz University, P.O. Box 80203, Jeddah 21589, Saudi Arabia
7.
Lab Theor Cosmology, Int Centre of Gravity and Cosmos, TUSUR, Tomsk 634050, Russia
8.
Division of Dynamics and Control, School of Mathematics and Statistics, Shandong University of Technology, ZiBo 255000, China

Academic Editor: Masood Khalique

Received: 20 November 2021 Revised: 23 February 2022 Accepted: 03 March 2022 Published: 14 March 2022

In a low-carbon supply chain (LCSC) constructed by a single manufacturer and a single retailer, three decision-making models are established by introducing channel preference attributes. That is, a single sales channel model, an online and offline dual channel model, and a dual channel model in which the manufacturer share revenue with her retailer. Using the mean variance (MV) method to characterize the risk aversion utility function of the manufacturer and the retailer, the following r are found. i) Consumers' preference for low-carbon products is conducive to raising the price of low-carbon products and the firms' profits. ii) The deepening of the retailer's risk aversion promotes the increase of the manufacturer's price, while the impact of the manufacturer's risk aversion has an opposite effects. Although the arbitrage behavior of the retailer can not be completely avoided in the risk aversion environment. However in a limited risk aversion environment, dual-channel development is conducive to increasing the profits of the manufacturer, but may harm the interests of the retailer. iii) Consumers' preference for online channel helps the manufacturer increase prices and profit. iv) The sharing of revenue by the manufacturer to the retailer is conducive to increasing the revenue of the retailer. Based on this, in order to improve corporate profits and promote long-term transactions, the manufacturer can carry out low-carbon promotion and implement a dual-channel strategy. The retailer can actively seek channel cooperation with the manufacturer.
- low carbon supply chain,
- risk aversion,
- dual channel,
- revenue sharing
Citation: Tao Li, Xin Xu, Kun Zhao, Chao Ma, Juan LG Guirao, Huatao Chen. Low-carbon strategies in dual-channel supply chain under risk aversion[J]. Mathematical Biosciences and Engineering, 2022, 19(5): 4765-4793. doi: 10.3934/mbe.2022223

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Abstract

In a low-carbon supply chain (LCSC) constructed by a single manufacturer and a single retailer, three decision-making models are established by introducing channel preference attributes. That is, a single sales channel model, an online and offline dual channel model, and a dual channel model in which the manufacturer share revenue with her retailer. Using the mean variance (MV) method to characterize the risk aversion utility function of the manufacturer and the retailer, the following r are found. i) Consumers' preference for low-carbon products is conducive to raising the price of low-carbon products and the firms' profits. ii) The deepening of the retailer's risk aversion promotes the increase of the manufacturer's price, while the impact of the manufacturer's risk aversion has an opposite effects. Although the arbitrage behavior of the retailer can not be completely avoided in the risk aversion environment. However in a limited risk aversion environment, dual-channel development is conducive to increasing the profits of the manufacturer, but may harm the interests of the retailer. iii) Consumers' preference for online channel helps the manufacturer increase prices and profit. iv) The sharing of revenue by the manufacturer to the retailer is conducive to increasing the revenue of the retailer. Based on this, in order to improve corporate profits and promote long-term transactions, the manufacturer can carry out low-carbon promotion and implement a dual-channel strategy. The retailer can actively seek channel cooperation with the manufacturer.

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