Abstract
This paper considers the greening policies in a decentralized channel between one manufacturer and one retailer in a fuzzy decision making environment. We consider the manufacturing cost and the parameters of demand function as the fuzzy variables. Based on the different market structures, we develop three different fuzzy decentralized decision models. For each case, the expected value, optimistic value and pessimistic value models are formulated, and their optimal solutions are also derived through the fuzzy set theory. Finally, three numerical examples are solved to examine the effectiveness of fuzzy models. The effects of the confidence level of the supply chain member’s profits and the fuzziness of parameters on optimal prices, level of green innovation, and fuzzy expected profits of actors are also analyzed.
Highlights
In a traditional supply chain, chain members usually focus on their total costs and profits, and ignore their operations impacted on environment
We explore the impacts of the confidence level and the fuzzy degree of parameters on the equilibrium prices, green level and profits of the supply chain members
This paper deals with the coordination strategy in a m In this paper, we considered three different fuzzy models in green supply chain, in which supply chain participants pursued three different power balance scenarios
Summary
In a traditional supply chain, chain members usually focus on their total costs and profits, and ignore their operations impacted on environment. The works mentioned above discussed the game theoretic models of green supply chain with deterministic market demands and production costs. Wei and Zhao[15] proposed fuzzy models with pricing competition of two retailers in a closed-loop supply chain. Zhao et al studied the pricing competitive strategies in which one manufacturer sold his substitutable products to two competing retailers with fuzzy costs and demands. Zhao et al studied pricing competition problems with two manufacturers under fuzzy demand environments. Sang[22] investigated the coordination mechanism in a multiple supply chain with fuzzy demands and costs. In this paper, we will examine how the retailer and the manufacturer should make their own pricing and green level decisions in a fuzzy decision environment.
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