A retailer promotion policy model in a manufacturer Stackelberg dual-channel green supply chain

Abstract In supply chain research, it is essential to consider factors related to carbon emissions due to global climate change. In this paper, we examine a dual-channel green supply chain consisting of one manufacturer leader and one retailer follower where there are direct channel and retailer channel, formulating the corresponding centralized and decentralized model Compared with single-channel supply chain, the retailer is at a disadvantage due to the existence of the direct channel. A retailer promotion policy, as a kind of common activity in the operation of supply chain, is proposed to make the retailer more competitive, and the performance of the supply chain under the promotion strategy is examined. Finally, sensitivity analysis of the retailer’s sales effort is conducted to investigate influence of the retailer’s effort level on the incremental change in total profit of the supply chain.