Operation Strategies of Green Supply Chain Members with Short-Sighted and Far-Sighted Behavior: A Differential Game Theory Approach

Abstract

The concept of “green supply chain” has gained increasing attention in the pursuit of sustainable development by enterprises globally, leading to the optimization of supply chain management. However, the behavior patterns of some members in green supply chains exhibit differences. Hence, analyzing the choices of different behavior patterns among green supply chain members is of practical significance in improving supply chain governance and achieving sustainable development. In this study, a differential game model is constructed using differential game theory to analyze the behavior patterns among members of a green supply chain. Analytical solutions under different models are obtained with the aid of Bellman continuous dynamic programming theory, and comparative analysis and numerical examples are carried out to explore the operation strategies of green supply chain members and the choice of short-sighted and far-sighted behavior patterns. Our findings indicate that suppliers playing a leading role in the green supply chain should exhibit far-sighted behavior as decision makers, while retailers should also display far-sighted behavior. This study adopts a dynamic perspective and is innovative and cutting-edge, providing targeted recommendations for enterprises and serving as a reference for the future development of green supply chain management.