Title: A game theory framework for newly launched greening product in two-echelon supply chain

Authors: Sukhendu Bera; Raghu Nandan Giri; Dipak Kumar Jana; Kajla Basu; Manoranjan Maiti

Addresses: Department of Mathematics, National Institute of Technology Durgapur, Durgapur-713209, India ' Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore-721102, W.B., India ' Department of Applied Sciences, Haldia Institute of Technology, Haldia, Purba Medinipur-721657, India ' Department of Mathematics, National Institute of Technology Durgapur, Durgapur-713209, India ' Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore-721102, W.B., India

Abstract: A two-echelon supply chain model is considered where one manufacturer and one retailer reduce the customers' sensitivity to the product price and stimulate the demand of the product by introducing facilities such as the product's greenness, service level and promotional effort. They share the costs jointly on the above facilities following some agreements. The models are formulated as profit maximisation problems for the whole system and the individual chain members. The game theoretical approach is used to solve the models under centralised and decentralised decision scenarios. Several particular models are studied by considering one or two facilities (greenness, service level and promotional effort) at a time. Finally, numerical experiments are conducted and some managerial decisions are presented from the optimal results and sensitivity analyses. It is demonstrated that the greenness, service level and promotional effort activities stimulate higher demand and fetch more profits for the supply chain and its members.

Keywords: supply chain; greening investment; promotional effort; service level; Stackelberg game.

DOI: 10.1504/IJOR.2023.129160

International Journal of Operational Research, 2023 Vol.46 No.2, pp.149 - 188

Received: 23 Aug 2019
Accepted: 22 Feb 2020
Published online: 24 Feb 2023 *

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