Channel analysis in a serial supply chain with product greening

Abstract

In this paper, we examine a serial supply chain, the players of which initiate product 揼reening.� We consider situations in which either a retailer or a manufacturer initiates the process. Our problem is motivated by recent developments in the supply chains of Wal-Mart and P&G, where each player initiates product greening. We build game theoretic models and show how greening levels are influenced by the decision maker in the supply chain. Using evidence from existing literature, we say that product greening has a positive impact on consumer demand. We show how joint and individual decision-making by the players in selecting the product greening level impacts prices, profitability of the channel members and the entire supply chain. The problem throws interesting results with respect to the above key decision variables.