Green supply chain poverty alleviation through microfinance game model and cooperative analysis

This study was motivated by the activation of recent poverty alleviation practices within green supply chains. Specifically, this paper examined supply chain operations when the supply chain participants acted individually and cooperatively in a green poverty alleviation supply chain in which the manufacturer initiated product greening and provided microfinance to alleviate the poverty of poor raw materials suppliers. A series of supply chain game models were examined to elucidate the impact of the cooperative mechanisms on the greening levels, prices and profits, after which the impact of consumer green sensitivities and microfinance interest rates were examined. Consequently, an optimal cooperative mechanism was developed based on a two-part tariff contract. The key contributions in this paper are the establishment of a decision-making model for a cooperative supply chain mechanism and an optimal cooperative mechanism to initiate green poverty alleviation to solve the problems associated with the high microfinance interest rates. Practical implications and managerial insights about improving the economic and environmental performance of supply chain green poverty alleviation through cooperation are also presented. (C) 2019 Elsevier Ltd. All rights reserved.