A Supply Chain Coordination Strategy Considering CSR with Dual Yield Uncertainties

Focusing on a two-tier supply chain with upstream component suppliers as leaders and downstream manufacturers as followers, this paper establishes coordination models based on wholesale price contracts, revenue sharing contracts, and two-part pricing contracts. The impact of different contract mechanisms on the level of CSR investment by supply chain members and the performance of a supply chain is explored with consumer social responsibility and yield uncertainties. Results show that both upstream and downstream yield uncertainties can reduce the level of CSR investment by supply chain members, and even undermine the system performance of a supply chain. When the contract parameters are within certain ranges, both revenue sharing contracts and two-part pricing contracts can achieve coordination in a supply chain system. Under such conditions, for suppliers, high wholesale prices for parts with two-part pricing contracts can facilitate capital inflow; for manufacturers, low wholesale prices for parts with revenue-sharing contracts can reduce early production pressure.