Conclusion
In multi period supply chain environment, the retailer maintains SI to accomplish higher wholesale price negotiation power. However, the consequences of the retailer’s strategic decision are not investigated in the literature on GSCM. Therefore, in this paper we discuss the joint impact of the retailer’s strategic decision and consumer continuous expectation on the investment and wholesale pricing decision of the manufacturer in improving greening level of the product. Perhaps, this is the first study on GSCM where three businesslike procurement strategies are discussed analytically to explore the consequences of the manufacturer investment decision to improve greening level of the product. Making energy efficient electronic products, reducing amount of preservatives and minimizing food waste, or producing eco-friendly and eco-healthy detergents are some well recognized areas where manufacturers are continuously focusing to enhance products greening level by integrating modern technologies. This study reveals that the retailer’s strategic decision not only improves the profits of the supply chain members but encourages the manufacturer to improve product greening level also. The manufacturer always gets higher profit if the retailer maintains SI. However, if the retailer participates in greening level improvement cost sharing, then the single ordering decision for each period is sometimes proved to be the optimal procurement policy for the retailer. In that situation, the consumer gets the product at its lowest greening level and the manufacturer receives the least amount of profits.
