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| Co-Management of Prices, Green Efforts and Service Levels in Sweatshop Supply Chains |
| YANG Tianjian，JIANG Xiuxiu，ZHANG Yuejun，SONG Jingxiu |
| 1.Beijing University of Posts and Telecommunications, Beijing, China; 2.Hunan University, Changsha, China |
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Abstract This study co-manages price, green efforts and service level in dynamic product service supply chain using a sweatshop mode, which is characterized by fixed service capacity and negative impacts of increasing service level on sustainable impressions. Then, based on differential game methods, we model both centralized and decentralized channels as the benchmark. In addition, cost sharing contract, profit sharing contract, and linear pricing & cost sharing contract are further adopted to coordinate the dynamic supply chain. A comprehensive comparison is provided for various scenarios. Results show that a sweatshop mode can make the dynamic supply chain more easily coordinate; initial sustainable impressions play a significant role in increasing supply chains’ profits. Finally, we find that profit sharing and linear pricing & cost sharing contract can fully coordinate pricing, green efforts and service level decisions for dynamic supply chains, while cost sharing contract can only achieve Pareto improvement.
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Received: 10 July 2019
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