Developing a supply chain coordination model through a revised revenue sharing contract: Incorporating sales efforts and green quality considerations

In response to the growing emphasis on supply chain sustainability and green business management, this study addresses the critical challenges faced by industries in balancing the costs and benefits of enhancing the green quality of products, pricing strategies, and sales efforts. As environmentally...

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Main Authors: Mahdi Nakhaeinejad, Abolfazl Dehghan, Nayereh Sadat Vaziri
Format: Article
Language:English
Published: Universitat Politècnica de València 2025-01-01
Series:International Journal of Production Management and Engineering
Subjects:
Online Access:https://polipapers.upv.es/index.php/IJPME/article/view/20402
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author Mahdi Nakhaeinejad
Abolfazl Dehghan
Nayereh Sadat Vaziri
author_facet Mahdi Nakhaeinejad
Abolfazl Dehghan
Nayereh Sadat Vaziri
author_sort Mahdi Nakhaeinejad
collection DOAJ
description In response to the growing emphasis on supply chain sustainability and green business management, this study addresses the critical challenges faced by industries in balancing the costs and benefits of enhancing the green quality of products, pricing strategies, and sales efforts. As environmentally conscious consumers increasingly prefer products from sustainable supply chains, industries encounter the dilemma of investing in sustainable practices while maintaining profitability. This research identifies the need for effective decision optimization models and coordination mechanisms that incentivize supply chain members to collaborate towards sustainable production without compromising their financial goals. To this end, we propose a novel hybrid cost and revenue sharing (HCRS) contract designed to foster collaboration among supply chain partners and align their interests in promoting sustainability. By examining optimal decision-making conditions, coordination mechanisms, and profit-sharing arrangements, the study highlights how the implementation of the HCRS contract can lead to improved supply chain performance and profitability. Our findings indicate that an increase in customer sustainability consciousness (CSC) positively correlates with higher levels of product green quality and overall profit, illustrating the potential benefits of prioritizing sustainability in supply chain operations.
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institution Kabale University
issn 2340-4876
language English
publishDate 2025-01-01
publisher Universitat Politècnica de València
record_format Article
series International Journal of Production Management and Engineering
spelling doaj-art-8015c8c5ffe1440ab5ffea6a79b2998d2025-01-31T13:48:48ZengUniversitat Politècnica de ValènciaInternational Journal of Production Management and Engineering2340-48762025-01-0113110212110.4995/ijpme.2025.2040219595Developing a supply chain coordination model through a revised revenue sharing contract: Incorporating sales efforts and green quality considerationsMahdi Nakhaeinejad0https://orcid.org/0000-0002-2108-0287Abolfazl Dehghan1https://orcid.org/0009-0000-9901-1700Nayereh Sadat Vaziri2Yazd UniversityYazd UniversityYazd University In response to the growing emphasis on supply chain sustainability and green business management, this study addresses the critical challenges faced by industries in balancing the costs and benefits of enhancing the green quality of products, pricing strategies, and sales efforts. As environmentally conscious consumers increasingly prefer products from sustainable supply chains, industries encounter the dilemma of investing in sustainable practices while maintaining profitability. This research identifies the need for effective decision optimization models and coordination mechanisms that incentivize supply chain members to collaborate towards sustainable production without compromising their financial goals. To this end, we propose a novel hybrid cost and revenue sharing (HCRS) contract designed to foster collaboration among supply chain partners and align their interests in promoting sustainability. By examining optimal decision-making conditions, coordination mechanisms, and profit-sharing arrangements, the study highlights how the implementation of the HCRS contract can lead to improved supply chain performance and profitability. Our findings indicate that an increase in customer sustainability consciousness (CSC) positively correlates with higher levels of product green quality and overall profit, illustrating the potential benefits of prioritizing sustainability in supply chain operations.https://polipapers.upv.es/index.php/IJPME/article/view/20402supply chain coordinationrevenue-sharing contractpromotional effortgreen quality
spellingShingle Mahdi Nakhaeinejad
Abolfazl Dehghan
Nayereh Sadat Vaziri
Developing a supply chain coordination model through a revised revenue sharing contract: Incorporating sales efforts and green quality considerations
International Journal of Production Management and Engineering
supply chain coordination
revenue-sharing contract
promotional effort
green quality
title Developing a supply chain coordination model through a revised revenue sharing contract: Incorporating sales efforts and green quality considerations
title_full Developing a supply chain coordination model through a revised revenue sharing contract: Incorporating sales efforts and green quality considerations
title_fullStr Developing a supply chain coordination model through a revised revenue sharing contract: Incorporating sales efforts and green quality considerations
title_full_unstemmed Developing a supply chain coordination model through a revised revenue sharing contract: Incorporating sales efforts and green quality considerations
title_short Developing a supply chain coordination model through a revised revenue sharing contract: Incorporating sales efforts and green quality considerations
title_sort developing a supply chain coordination model through a revised revenue sharing contract incorporating sales efforts and green quality considerations
topic supply chain coordination
revenue-sharing contract
promotional effort
green quality
url https://polipapers.upv.es/index.php/IJPME/article/view/20402
work_keys_str_mv AT mahdinakhaeinejad developingasupplychaincoordinationmodelthrougharevisedrevenuesharingcontractincorporatingsaleseffortsandgreenqualityconsiderations
AT abolfazldehghan developingasupplychaincoordinationmodelthrougharevisedrevenuesharingcontractincorporatingsaleseffortsandgreenqualityconsiderations
AT nayerehsadatvaziri developingasupplychaincoordinationmodelthrougharevisedrevenuesharingcontractincorporatingsaleseffortsandgreenqualityconsiderations