It assumes that two Chinese medicinal materials logistics distribution enterprises provide green logistics distribution service and general logistics distribution service with mutual substitution. Considering consumer purchase behavior, it divides consumers into the green consumer and general consumers. It further supposes that two types of consumer’s valuations for two kinds of distribution are heterogeneous, and are uniformly distribution. We use a utility function to get the consumers’ consumer behavior. Under the condition of concentration and decentralize respectively, we get optimal pricing of green logistics distribution service and general logistics distribution service by maximizing profit of the whole supply chains and the two enterprises. We identify the two Chinese medicinal materials logistics distribution enterprises’ pricing is positively related to the price sensitivity of consumers in both integrated supply chain and decentralized supply chain. Under some conditions, the pricing of the two enterprises are positively related to consumer environmental awareness.
Chinese medicinal materials Environmental preference Logistics distribution service Pricing Price sensitivity
This is a preview of subscription content, log in to check access.
This work is supported by Anhui higher school natural fund key project No. KJ2015A415.
J.R. Birge, J. Drogosz, I. Duenyas, Setting single-period optimal capacity levels and prices for substitutable products. Int. J. Flex. Manuf. Syst. 10(4), 407–430 (1998)CrossRefGoogle Scholar
K. Rajaram, C.S. Tang, The impact of product substitution on retail merchandising. Eur. J. Oper. Res. 135(3), 582–601 (2001)CrossRefGoogle Scholar
W.J. Hopp, X. Xu, Product line selection and pricing with modularity in design. Manuf. Serv. Oper. Manag. 7(3), 172–187 (2005)CrossRefGoogle Scholar
H.A. Kuyumcu, I. Popescu, Deterministic price–inventory management for substitutable products. J. Revenue Pricing Manag. 4(4), 354–366 (2006)CrossRefGoogle Scholar
C.S. Tang, R. Yin, Joint ordering and pricing strategies for managing substitutable products. Prod. Oper. Manag. 16(1), 138–153 (2007)CrossRefGoogle Scholar
M. Karakul, L.M.A. Chan, Joint pricing and procurement of substitutable products with random demands—a technical note. Eur. J. Oper. Res. 201(1), 324–328 (2010)CrossRefGoogle Scholar
Y. Xia, Competitive strategies and market segmentation for suppliers with substitutable products. Eur. J. Oper. Res. 210(2), 194–203 (2011)CrossRefGoogle Scholar
E. Stavrulaki, Inventory decisions for substitutable products with stock-dependent demand. Int. J. Prod. Econ. 129(1), 65–78 (2011)CrossRefGoogle Scholar
J. Zhao, W. Tang, J. Wei, Pricing decision for substitutable products with retail competition in a fuzzy environment. Int. J. Prod. Econ. 135(1), 144–153 (2012)CrossRefGoogle Scholar
J. Zhao, W. Tang, R. Zhao, J. Wei, Pricing decisions for substitutable products with a common retailer in fuzzy environments. Eur. J. Oper. Res. 216(2), 409–419 (2012)CrossRefGoogle Scholar
J.-M. Chen, C.-I. Chang, Dynamic pricing for new and remanufactured products in a closed-loop supply chain. Int. J. Prod. Econ. 146(1), 153–160 (2013)CrossRefGoogle Scholar
J. Zhang, B. Shou, J. Chen, Postponed product differentiation with demand information update. Int. J. Prod. Econ. 141(2), 529–540 (2013)CrossRefGoogle Scholar
J. Zhao, J. Wei, Y. Li, Pricing decisions for substitutable products in a two-echelon supply chain with firms׳ different channel powers. Int. J. Prod. Econ. 153, 243–252 (2014)CrossRefGoogle Scholar
C. Chialin, Design for the environment: a quality-based model for green product development. Manag. Sci. 47, 250–263 (2001)CrossRefGoogle Scholar
L. Zugang, D.A. Trisha, M.C. Jose, Consumer environmental awareness and competition in two-stage supply chains. Eur. J. Oper. Res. 218, 602–613 (2012)CrossRefGoogle Scholar
B. Marcus, C.K. Anderson, Revenue management for low-cost providers. Eur. J. Oper. Res. 188, 258–272 (2008)CrossRefGoogle Scholar