Transshipment contract for coordination of a green dual-channel supply chain under channel disruption

This paper addresses the issue of pricing, product greenness, and coordination in a dual channel supply chain under channel disruption. It is assumed that one type of green product is being sold through a dual supply system. Also the movement of customers between channels in cases that only one of the channels is disrupted is surveyed. The decisions and profits of the supply chain and the members in the centralized and decentralized decision structures are extracted. In order to coordinate the supply chain, a transshipment contract is proposed and its application and usefulness is examined through a series of numerical examples and sensitivity analyses. The results illustrate that the proposed contract is capable of coordinating the supply chain and also guaranteeing the members' profitability. (C) 2019 Elsevier Ltd. All rights reserved.