Research On Environmental Cost Allocation Mechanism Of Brand-name Product Supply Chain

In recent years,environmental issues have attracted widespread public attention.Frequently exposed environmental incidents are caused by suppliers of brand name product companies.In 2012,Greenpeace revealed that Adi and other designer clothes contained harmful chemicals.In 2013,Armani and other brand-name product suppliers suffered water pollution.In 2017,Schaeffler's supplier,Jielong,was forced to suspend production due to environmental problems,resulting in 49 companies.The auto company lost 300 billion yuan.Behind these environmental incidents is the necessity of the environmental management of suppliers by brand name product companies.On the one hand,due to the impact of chain responsibility,consumers will attribute environmental responsibility of their suppliers to brand name product companies;on the other hand,once environmental incidents from suppliers may cause huge losses to the entire industry.The environmental pollution incidents in the upper reaches of the supply chain of brand-name products are the reason why suppliers often bear all the environmental costs of manufacturing,including research and development,and governance,and they also use their own brand-name products in the supply chain of brand-name products.Market advantage oppresses suppliers.Some scholars have found that due to the superiority of discourse power,brand-name product companies can even determine the wholesale price of suppliers.Therefore,under the pressure of survival costs,suppliers often pass on costs to the environment.By reading domestic and foreign literature and understanding the reality,the author found that a reasonable and effective contract coordination mechanism is crucial to the operation of the supply chain.Based on this,this study uses the supply chain contract coordination theory to design the apportionment mechanism for the environmental cost of the brand-name product supply chain.Taking into account the pricing power of wholesale prices in the supply chain of brand-name products,the authors designed different environmental cost sharing mechanisms.First,when the wholesale price is decided by the supplier,a direct apportionment mechanism based on the environmental cost and an indirect environmental cost sharing mechanismbased on the revenue sharing contract are designed.Through the numerical analysis,the environmental cost parameters and the consumers' environmental awareness on the decision variables are explored.Impact;Then,considering that the wholesale price is determined by a brand-name product company,the wholesale price is indirectly increased based on the wholesale price-transfer contract,which realizes the indirect apportionment of the supplier's environmental costs,achieves the incentive effect,and is implemented through MATLAB.Numerical simulation;Finally,through the analysis of supply chain application under the leadership of H Group,the effectiveness of the apportionment mechanism for the environmental cost of supply chain of brand-name products was verified,and the corresponding countermeasures and recommendations were put forward in light of the actual situation of H Group.This article draws the following conclusions:(1)The increase of consumer awareness led to an increase in market demand,prompt the brand-name products and companies to share the environmental costs of suppliers,and manage suppliers' environmental behavior.The direct sharing mechanism based on environmental costs,the indirect environmental cost sharing mechanism based on the revenue sharing contract and wholesale price-transfer payment contract are both scientific and effective environmental management strategies.(2)When the supplier decides the wholesale price,when the environmental awareness of consumers is low,the direct apportionment mechanism based on environmental costs and the environmental cost sharing mechanism based on revenue sharing can be selected.However,if the supplier has no independent ability to solve environmental problems,It is recommended that brand-name product companies choose a direct cost-sharing mechanism for environmental costs.If the suppliers are large and medium-sized enterprises,brand-name product companies should choose an environmental cost sharing mechanism based on the revenue sharing contract in order to obtain greater profits.(3)When a brand-name product company determines the wholesale price,the brand-name product enterprise should choose an environmental cost sharing mechanism based on the wholesale price-transfer payment contract.By indirectly raising the wholesale price and indirectly sharing the environmental cost of the supplier,Supply chain environmental performance and both profits have been improved,and the entire supply chain achieve optimal profit.(4)None of these three sharing mechanisms can achieve coordination under centralized decision-making,but improve environmental performance,profits of both parties and overall profit in the supply chain as compared with unallocated circumstances.In addition,when a brand-name product company grasps the pricing power of a wholesale price,a brand-name product company can provide the best environmental performance and a transfer payment factor that can be selected by the provider to achieve concentration coordination under decision-making.(5)Consumer awareness of environmental protection is crucial to promote brand-name products enterprises to implement environmental cost sharing mechanism.When consumers have a higher awareness of environmental protection,the improvement of environmental performance can make the profits of both parties greatly increase and achieve a win-win situation.Therefore,brand-name products companies should actively carry out publicity job,cooperration with the media,third-party environmental protection organizations(NGO)to promote good environmental behavior of suppliers,and to drive the entire supply chain sustainable development.