Manufacturing and selling tactics for a green supply chain under a green cost sharing and a refund agreement. (19th February 2020)

• Record Type: Journal Article
• Authors: Taleizadeh, Ata Allah; Noori-Daryan, Mahsa; Sana, Shib Sankar
• Is Part Of: Journal of modelling in management. Volume 15:Number 4(2020)
• Page Start: 1419
• Page End: 1450
• Publication Date: 2020-02-19
• Subjects: Supply chain management -- Game theory -- Inventory control -- Deterministic demand -- Cost sharing -- Refund -- Supply chain -- Pricing; Industrial management -- Mathematical models -- Periodicals; Industrial management -- Computer simulation -- Periodicals; Business -- Mathematical models -- Periodicals; Business -- Computer simulation -- Periodicals; 658.4033
• DOI: 10.1108/JM2-01-2019-0016
• Languages: English
• ISSNs: 1746-5664

Abstract

Abstract : Purpose: This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various scenarios. Demand depends on a price, refund and quality where the producer controls quality and the vendor proposes a refund policy to purchasers to encourage them to order more. Design/methodology/approach: In the first scenario, the members seek to optimize their optimum decision variables under a centralized decision-making method while in the second scenario, a decentralized system is assumed where the members make a decision about variables and profits under a non-cooperative game. In the third scenario, a cost-sharing agreement is concluded between the members to provide a high-quality item to the purchasers. Findings: The performance of the proposed model is investigated by illustrating a numerical example. A sensitivity analysis of some key parameters has been done to study the effect of the changes on the optimal values of the decision variables and profits. From sensitivity analysis, the real features are observed and mentioned in this section. Originality/value: This research examines the behavior of partners in a green supply chain facing with a group of purchasers whose demand is the function of a price, greenery degree and refund rate. This proposed mathematical model is developed and analyzed which has an implication in supply chain model.