Research Article | OPEN ACCESS
The Incentive Mechanism of Green Supply Chain for Raw Material Procurement
Jian Cao, Liling Hu and Hongli Wen
Department of Information Intelligence and Decision-making Optimization,
Zhejiang University of Technology, Hangzhou 310023, China
Research Journal of Applied Sciences, Engineering and Technology 2013 12:3359-3363
Received: September 15, 2012 | Accepted: October 24, 2012 | Published: April 10, 2013
Abstract
To promote the development of green products’ market, the Green Supply Chain (GSC) is a key tool for enterprises. The reasonable coordinating and incentive mechanisms between the members in the GSC are helpful for the effective operation of GSC. For a two-echelon GSC system including a manufacturer and a supplier, the green degree of raw material is the private information for the supplier. To solve this asymmetric information problem, an incentive mechanism is designed by applying the transfer payment method as well as the optimal control theory. It indicates that the proposed mechanism can reveal the real green degree of raw material provided by the supplier and achieve the mutually beneficial maximization as far as possible. The conclusions have good guidance values for the GSC’s operation at initial stage of the green market.
Keywords:
Adverse selection, green supply chain, incentive mechanism, raw material procurement, revelation principle,
Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
|
|
![](http://www.maxwellsci.com/images/RJASET-maxw.jpg) |
ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
![Submit Manuscript](../images/sub.jpg) |
Information |
|
|
|
Sales & Services |
|
|
|