Industrial Management Studies

Two-Channel Green Supply Chain Pricing Decisions Considering Advertising in Centralized and Decentralized Modes

Document Type : Research Paper

Authors

Parisa Hosseini 1
Mehdi Seifbarghy 2

1 Master, Department of Industrial Engineering, Faculty of Engineering, Alzahra University, Tehran, Iran

2 Professor, Department of Industrial Engineering, Faculty of Engineering, Alzahra University, Tehran, Iran

https://doi.org/10.22054/jims.2024.78110.2901
Abstract
One of the most critical decisions in the supply chain is pricing, playing a vital role in the profitability of the entire supply chain. In this research, a two-tier green supply chain is considered, comprising a producer and a retailer, where two types of products, standard and green, are produced. The demand for products is determined as a certain linear function of product prices, delivery time in the online channel, the level of green quality, advertising intensity, and information tracing level. Green products are sold through the online channel, while standard products are distributed through traditional retail channels. The government provides subsidies for the production of green products and the implementation of blockchain technology. The decision-making problem is approached through two centralized and decentralized models. In the decentralized model, a Stackelberg game is employed, with the producer leading the decision-making process. In the centralized model, all supply chain members make decisions in a unified manner. The results indicate that the centralized model yields the highest profitability for the supply chain. Additionally, in the centralized model, all products are observed to have the lowest prices.

Keywords

Pricing
Green supply chain
Delivery Time
Advertising
Information Tracing
Subjects
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Industrial Management Studies
Volume 22, Issue 74
Autumn 2024
Pages 51-94

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