Seminario: “Environmental Collaboration and Process Innovation in Supply Chain Management with Coordination”

Lunedì 14 Maggio 2018, ore 13:330 - Aula 2AB40 - Pietro De Giovanni


Lunedì 14 Maggio 2018 alle ore 13:30 in Aula 2AB40, Pietro De Giovanni (ESSEC Business School)
terrà un seminario dal titolo “Environmental Collaboration and Process Innovation in Supply Chain Management with Coordination”.

This paper investigates a dynamic supply chain model in which a supplier decides both the wholesale price and the green process innovation investments while a manufacturer sets the retail price. The green innovation investments not only contribute positively to the environmental performance, but also lead to marginal production cost reductions. The environmental performance positively influences the demand, which leads to larger production volume and in turn damages the environmental performance via negative externalities (e.g., emissions). We resolve this operational trade-off and compare an uncoordinated setting to a revenue sharing contract complemented by a collaborative program. We show that the overall benefit of environmental cooperation in green process innovation entails the existence of a profit-Pareto-improving region. Nevertheless, the maximum environmental performance fails to occur in the profit-Pareto-improving region, which shows the mismatch between economic and environmental performance. Moreover, a wholesale price contract might help to enhance environmental performance while supply chains might prefer a revenue sharing contract or vertical integrated chain to maximize profits.

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