Analysis of sales and financing modes in a green platform supply chain with a capital-constrained manufacturer
ISSN: 0368-492X
Article publication date: 2 November 2021
Issue publication date: 17 January 2023
Abstract
Purpose
The purpose of this paper is to investigate the optimal operational strategies in a green platform supply chain and provide suggestions on the selection of sales and financing modes for the capital-constrained manufacturer.
Design/methodology/approach
This study combines different sales channels with financing modes and investigates three sales-financing modes, i.e. traditional sales-prepayment financing (TSPF), traditional sales-bank financing (TSBF) and online sales e-retailer financing (OSEF). By establishing and comparing Stackelberg game models of these sales-financing modes from the perspectives of economy, environment and social welfare, the optimal strategies of emission reduction, financing, pricing and service improvement are obtained.
Findings
The results suggest that as the commission rate increases to a certain level, a threshold of the cost coefficient of emission reduction can be found such that the manufacturer should choose OSEF below this threshold and TSBF above this threshold. OSEF is Pareto optimal when this cost coefficient is low, and this mode can lead to the highest social welfare when the platform loan interest rate is relatively low. The Pareto areas in TSBF and OSEF enlarge as the default coefficient decreases.
Practical implications
These results can provide operational insights on how to select sales channels and financing modes when manufacturer faces financial constraints in emission reduction.
Originality/value
This paper combines different sales and financing modes to study their comprehensive influence on the decision-makings of chain members and the resulting performance of economy, environment and social welfare.
Keywords
Acknowledgements
Jun Wang and Song Yao are co-first authors of this paper.
Funding: This work was supported by the Project of Humanities and Social Sciences for Young Scholars, the Chinese Ministry of Education [Grants 20YJC630037] and National Natural Science Foundation of China [72102163].
Conflicts of interest: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
Citation
Wang, J., Yao, S., Wang, X., Hou, P. and Zhang, Q. (2023), "Analysis of sales and financing modes in a green platform supply chain with a capital-constrained manufacturer", Kybernetes, Vol. 52 No. 1, pp. 463-491. https://doi.org/10.1108/K-04-2021-0258
Publisher
:Emerald Publishing Limited
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