Coordination strategies in two-stage supply chains under partial stochastic demand information: A focus on corporate social responsibility and marketing efforts
Volume 12, Issue 1, July 2025, Pages 53-70
https://doi.org/10.22116/jiems.2025.502543.1590
Yalda Sedighi Sereshke, Mohammad Reza Gholamian, Seyyed-Mahdi Hosseini-Motlagh, Somayeh Fathollahi Arani, Marzie Raei
Abstract Recently, there has been a notable increase in research efforts focused on achieving supply chain (SC) coordination by considering corporate social responsibility (CSR) as a crucial factor in decision-making. This study explores the coordination of a two-stage SC, including a manufacturer with CSR investment and a retailer with marketing efforts, under deterministic and stochastic with partial information demand scenarios. Furthermore, it analyzes decisions related to pricing, order quantity, CSR investment, and marketing efforts by presenting decentralized, centralized, and coordinated strategies. A comprehensive numerical analysis, involving a numerical example and a set of sensitivity analyses, is conducted to evaluate the efficacy of the proposed models. Results indicate that a two-part tariff (TPT) contract can effectively coordinate the SC and motivate the manufacturer to enhance its CSR investment, ultimately resulting in profitability equivalent to that of the centralized strategy. Moreover, the manufacturer's CSR investment and the retailer's marketing efforts contribute to increased market demand and profitability.