The Effect of Renewable Energy and Corporate Social Responsibility on Dual-Channel Supply Chain Management
Abstract
:1. Introduction
1.1. Research Gap of the Study
- Two manufacturers share some percentage of total profit to society through CSR. The market price competition between CP and EFP products with the greenness level of the product under renewable energy consumption is studied here.
1.2. Objective of the Study
- The EFP’s price and quality under renewable energy consumption when Manufacturer 1 (M1) has the information about the conventional item’s price, and the CP’s price under renewable energy consumption when Manufacturer 2 (M2) has information about the EFP’s price and quality.
- The CP’s price and the EFP’s price and quality under renewable energy consumption in the centralized system when the pricing method and GQ are unknowable to M1 and M2.
- The effect of CSR initiatives on green quality (GQ) and pricing under renewable energy consumption, and the differences between the centralized and decentralized sustainable supply chain model (SSCM) under renewable energy consumption.
1.3. Purpose of the Study
1.4. Contribution of the Study
1.5. Research Methodology
2. Literature Review
2.1. Corporate Social Responsibility
2.2. Sustainable Supply Chain Management
2.3. Selling Mode
2.4. Eco-Friendly Product, Conventional Product, and Price Competition
3. Materials
3.1. Problem Definition
3.2. Assumptions
- A SSCM is developed with a single manufacturer and retailer for EFP under renewable energy.
- No holding cost is considered here as it is assumed that the retailer follows a just-in-time policy and the manufacturer produces the products as per order.
- Supply chain members invest in developing EFP, and demand depends on GQ and selling price.
- M1 and M2 produce EFP (P1) and CP (P2) under renewable energy consumption, which are substitutable types; therefore, there is competition on price to market capture.
- M1 and M2 produce products as per order, and that’s why there is no holding cost, and both firms share some percentage of profit to the society through CSR.
- Retailer sells products to customers through three different modes: online, offline, and BOPS.
3.3. Notation
4. Mathematical Model Formulation and Methods
4.1. Model 1
4.1.1. Case 1
Decentralized System
Centralized System
4.1.2. Case 2
Decentralised Case
Centralised Case
4.2. Model 2: M1 and M2 Competes with Selling Price
4.2.1. When M1 Knows the Fixed Selling Price of CP
4.2.2. When M2 Knows the Fixed Selling Price of EFP and GQ
4.3. Pricing Analysis in Co-Ordinated System of M1 and M2
4.4. When Demand Is Power Function of Selling Price
4.5. Pricing Analysis in Coordinated System of M1 and M2
5. Numerical Example and Analysis
Discussion
6. Managerial Insights
7. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
Abbreviations
OAO | Online and offline |
OOBOPS | Online-offline-BOPS |
SCM | Supply chain model |
PM | Production model |
SSCM | Sustainable supply chain model |
GEBM | Green energy business models |
HRES | Hybrid renewable energy system |
GDP | Green product development |
CSR | Corporate social responsibility |
CS | Corporate sustainability |
SDG | Sustainable development goal |
BOPS | Buy online and pick up in store |
EFP | Eco-friendly product |
CP | Conventional product |
GQ | Green quality |
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Author(s) | Model Type | Renewable Energy | Selling Mode | Green Product | Regular Product | Price Competition | CSR |
---|---|---|---|---|---|---|---|
Czarnecka et al. (2022) [6] | GEBM | Yes | No | Yes | No | No | No |
Dey et al. (2023) [19] | SCM | No | Yes | No | Yes | No | No |
Ming et al. (2017) [3] | HRES | Yes | No | No | No | No | No |
Mondal and Giri (2020) [20] | SCM | No | No | Yes | No | No | Yes |
Kar et al. (2023) [21] | PM | No | Yes | No | Yes | No | No |
Sana (2021) [14] | SCM | No | No | Yes | Yes | Yes | Yes |
This study | SSCM | Yes | OOBOPS | Yes | Yes | Yes | Yes |
Index | |
---|---|
Online, offline, BOPS channel | |
Decision | |
variables | |
retailer’s selling price in i-th channel | |
g | level of the greenness of the product |
retailer’s ith channel selling price for EFP | |
retailer’s ith channel selling price for the CP | |
Parameters | |
c | product’s procurement cost |
G | cost per unit greenness |
s | selling price of manufacturer |
Energy related cost due to procurement | |
Energy related cost due to greenness | |
Market capacity of the i-th channel | |
, , | scaling parameter |
manufacturer’s fraction of investment for EFP development | |
d | market’s demand |
profit of manufacturer | |
profit of retailer | |
market demand for EFP | |
market demand for CP | |
profit after CSR activity for EFP and CP, respectively | |
total profit of the centralized system | |
procurement cost of EFP and CP, respectively | |
Energy related cost due to procurement of EFP and CP, respectively | |
fraction of investment earned from EFP and CP for development | |
scaling parameters |
Previous paper | Demand of green product | 194.53 | Demand of non-green product | 14.13 |
This study | Demand of green product | 50619.17 | Demand of non-green product | 3676.83 |
Previous paper | Selling price of green product | $39.02 | Green level | 2.740 |
This study | Selling price of green | $39.34, $25.26, $39.34 | Green level | 32.38 |
product in three channels | ||||
Previous paper | Selling price of non-green product | $39.34 | Total profit | $2370.85 |
This study | Selling price of non-green | $30, $20, $30 | Total profit | $118,419.69 |
product in three channels |
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Kar, S.; Pal, A.; Basu, K.; Sarkar, A.; Sarkar, B. The Effect of Renewable Energy and Corporate Social Responsibility on Dual-Channel Supply Chain Management. Energies 2023, 16, 3030. https://doi.org/10.3390/en16073030
Kar S, Pal A, Basu K, Sarkar A, Sarkar B. The Effect of Renewable Energy and Corporate Social Responsibility on Dual-Channel Supply Chain Management. Energies. 2023; 16(7):3030. https://doi.org/10.3390/en16073030
Chicago/Turabian StyleKar, Sumi, Anita Pal, Kajla Basu, Achyuth Sarkar, and Biswajit Sarkar. 2023. "The Effect of Renewable Energy and Corporate Social Responsibility on Dual-Channel Supply Chain Management" Energies 16, no. 7: 3030. https://doi.org/10.3390/en16073030