Journal of Industrial Engineering and Management Studies

Coordination strategies in two-stage supply chains under partial stochastic demand information: A focus on corporate social responsibility and marketing efforts

Document Type : Original Article

Authors

Yalda Sedighi Sereshke
Mohammad Reza Gholamian
Seyyed-Mahdi Hosseini-Motlagh
Somayeh Fathollahi Arani
Marzie Raei

Department of Logistics and Supply Chain Engineering, School of Industrial Engineering, Iran University of Science and Technology

https://doi.org/10.22116/jiems.2025.502543.1590
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.

Keywords

Supply chain coordination
Corporate social responsibility
Marketing efforts
Stochastic demand
Distribution-free approach
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Journal of Industrial Engineering and Management Studies
Volume 12, Issue 1
July 2025
Pages 53-70

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