Differential game and coordination of a three-echelon closed-loop supply chain considering green innovation and big data marketing

In this paper, the problems of green innovation investment and coordination are investigated for a three-echelon closed-loop supply chain with Big Data services, where the considered supply chain consists of a manufacturer, a retailer and Big Data service provider. Firstly, by considering the effects of product energy efficiency level (EEL) on demand and recycling quantity, the differential game models under centralized and decentralized decision modes are established. By applying optimal control theory, both the equilibrium strategies and channel profits are solved and compared under the two modes. Then, the joint contract including a revenue-sharing contract and a bilateral cost-sharing contract is proposed to coordinate the supply chain. Finally, the impacts of key system parameters on equilibrium strategies, product EEL, brand goodwill and channel profits are discussed by numerical examples. Meanwhile, the effectiveness of the joint contract in coordinating the decentralized channel is verified. The results show that the green innovation effort, the Dig Data marketing effort, the EEL of product, the brand goodwill and channel profits under centralized decision mode are higher than those values under decentralized decision mode, but the recycling quantity is relatively low. The joint contract can coordinate three-echelon closed-loop supply chain.