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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
Abstract:

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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