Strategic environmental quality investments in multi-tier supply chains

Yalçın, Pınar
We study a buyer’s strategies to incentivize environmental quality investment in a three-tier supply chain. Environmental quality of the end product depends on the environmental performances of both the tier 1 and tier 2 suppliers. A higher environmental quality produces an increased demand for the end product; and hence for the whole supply chain. In this setting, we compare the effectiveness of a delegation vs. a full control model from the buyer’s cost-sharing perspective. Our analysis considers how the buyer’s and the suppliers’ decisions are impacted by the market opportunity for improved quality and the division of the supply chain margin between the three parties.


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Citation Formats
P. Yalçın, “Strategic environmental quality investments in multi-tier supply chains,” M.S. - Master of Science, Middle East Technical University, 2018.