Strategic Environmental Quality Investments in Multi-tier Supply Chains
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.
This is joint work with Özgen Karaer and Tim Kraft.
Pınar Yalçın is working as a Data Scientist at Garanti Technology. Previously, she worked in Turkish Airlines as a Marketing Analyst and in Aselsan as a Planning and Analysis Engineer. She received her Bachelor’s degree in Industrial Engineering and her Master’s degree in Operational Research from Middle East Technical University.
Friday, October 11, 2019 at 4.00 pm in IE 03