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2013 (Vol. 5, Issue: 10)
Article Information:

Incentive Mechanism of Green Supply Chain to Promote Supplier’s Technology R&D

Jian Cao and Qingqin Yao
Corresponding Author:  Jian Cao 

Key words:  Green supply chain, incentive mechanism, moral hazard, supplier, technology R&D, ,
Vol. 5 , (10): 3032-3036
Submitted Accepted Published
September 26, 2012 November 11, 2012 March 25, 2013

Based on the actual situation that the green market started to develop in China today, how to enhance the activity of supplier’s technology R&D is discussed in the study. According to a two-echelon supply chain system consists of a manufacturer and a supplier, under the asymmetric information of supplier’s R&D efforts level, the incentive mechanism for supplier to improve the green degree of intermediate goods is designed. The proposed incentive mechanism can stimulate the supplier’s R&D effort level at its maximum and achieve the system revenue as much as possible. The conclusion has a good practical guidance to operational decision-making of the members of green supply chain in the early green market.
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  Cite this Reference:
Jian Cao and Qingqin Yao, 2013. Incentive Mechanism of Green Supply Chain to Promote Supplier’s Technology R&D.  Research Journal of Applied Sciences, Engineering and Technology, 5(10): 3032-3036.
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ISSN (Online):  2040-7467
ISSN (Print):   2040-7459
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