Skip to main content
SpringerLink
Log in

Pricing policy on a dual competitive channel for a green product under fuzzy conditions

  • Original Article
  • Published:
Neural Computing and Applications Aims and scope Submit manuscript

Abstract

Due to the growth of community awareness, the popularity of green products has increased. In addition, with increasing Internet usage, companies use the Internet as a direct channel along with the traditional way to sell and distribute their products through retailers. This paper investigates pricing in a supply chain consisting of a manufacturer and a retailer with two distribution channels, direct (Internet) and indirect (retailer). The decision variables of the manufacturer are wholesale price and greening level of the product, while the retail price is the decision variable of the retailer. Due to the existence of uncertain conditions in the real world, this problem has been modeled by fuzzy parameters. A game theory approach is employed to provide equilibrium solutions for cooperative and non-cooperative scenarios. Finally, a numerical analysis is presented, and a sensitivity analysis is investigated. For example, it is concluded that vertical cooperation in the supply chain, in addition to increasing the entire supply chain profit, increases the product greenness level and thus improves the environment.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7

Similar content being viewed by others

References

  1. Yang MGM, Hong P, Modi SB (2011) Impact of lean manufacturing and environmental management on business performance: an empirical study of manufacturing firms. Int J Prod Econ 129(2):251–261

    Google Scholar 

  2. Diabat A, Kannan D, Mathiyazhagan K (2014) Analysis of enablers for implementation of sustainable supply chain management: a textile case. J Clean Prod 83:391–403

    Google Scholar 

  3. de Sousa Jabbour ABL, Jabbour CJC, Govindan K, Kannan D, Salgado MH, Zanon CJ (2013) Factors affecting the adoption of green supply chain management practices in Brazil: empirical evidence. Int J Environ Stud 70(2):302–315

    Google Scholar 

  4. Karakayali I, Emir-Farinas H, Akcali E (2007) An analysis of decentralized collection and processing of end-of-life products. J Oper Manag 25(6):1161–1183

    Google Scholar 

  5. Lin Y-H, Tseng M-L (2016) Assessing the competitive priorities within sustainable supply chain management under uncertainty. J Clean Prod 112:2133–2144

    Google Scholar 

  6. Zhu Q, Sarkis J, Lai K-h (2007) Initiatives and outcomes of green supply chain management implementation by Chinese manufacturers. J Environ Manage 85(1):179–189

    Google Scholar 

  7. Li B, Zhu M, Jiang Y, Li Z (2016) Pricing policies of a competitive dual-channel green supply chain. J Clean Prod 112:2029–2042

    Google Scholar 

  8. Palevich R (2011) The lean sustainable supply chain: how to create a green infrastructure with lean technologies. Ft Press, New York

    Google Scholar 

  9. Seuring S (2013) A review of modeling approaches for sustainable supply chain management. Decis Support Syst 54(4):1513–1520

    Google Scholar 

  10. Ghosh D, Shah J (2012) A comparative analysis of greening policies across supply chain structures. Int J Prod Econ 135(2):568–583

    Google Scholar 

  11. Tsay AA, Agrawal N (2004) Channel conflict and coordination in the e-commerce age. Prod Oper Manag 13(1):93–110

    Google Scholar 

  12. Xu H, Liu ZZ, Zhang SH (2012) A strategic analysis of dual-channel supply chain design with price and delivery lead time considerations. Int J Prod Econ 139(2):654–663

    Google Scholar 

  13. Huang S, Yang C, Liu H (2013) Pricing and production decisions in a dual-channel supply chain when production costs are disrupted. Econ Model 30:521–538

    Google Scholar 

  14. Chen J, Zhang H, Sun Y (2012) Implementing coordination contracts in a manufacturer Stackelberg dual-channel supply chain. Omega 40(5):571–583

    Google Scholar 

  15. Webster S, Weng ZK (2008) Ordering and pricing policies in a manufacturing and distribution supply chain for fashion products. Int J Prod Econ 114(2):476–486

    Google Scholar 

  16. Lee CH (2007) Coordination on stocking and progressive pricing policies for a supply chain. Int J Prod Econ 106(1):307–319

    Google Scholar 

  17. Xie Y, Petrovic D, Burnham K (2006) A heuristic procedure for the two-level control of serial supply chains under fuzzy customer demand. Int J Prod Econ 102(1):37–50

    Google Scholar 

  18. Handfield R, Warsing D, Wu X (2009) (Q, r) Inventory policies in a fuzzy uncertain supply chain environment. Eur J Oper Res 197(2):609–619

    MathSciNet  MATH  Google Scholar 

  19. Rommelfanger H (2004) The advantages of fuzzy optimization models in practical use. Fuzzy Optim Decis Mak 3(4):295–309

    MATH  Google Scholar 

  20. Zimmermann H-J (2000) An application-oriented view of modeling uncertainty. Eur J Oper Res 122(2):190–198

    MATH  Google Scholar 

  21. Wei J, Zhao J (2011) Pricing decisions with retail competition in a fuzzy closed-loop supply chain. Expert Syst Appl 38(9):11209–11216

    Google Scholar 

  22. Zadeh LA (1965) Fuzzy sets. Inf Control 8(3):338–353

    MATH  Google Scholar 

  23. Zhao J, Wei J, Sun X (2017) Coordination of fuzzy closed-loop supply chain with price dependent demand under symmetric and asymmetric information conditions. Ann Oper Res 257(1–2):469–489

    MathSciNet  MATH  Google Scholar 

  24. Özceylan E, Kabak M, Dağdeviren M (2016) A fuzzy-based decision making procedure for machine selection problem. J Intell Fuzzy Syst 30(3):1841–1856

    Google Scholar 

  25. Zhao R, Tang W, Yun H (2006) Random fuzzy renewal process. Eur J Oper Res 169(1):189–201

    MathSciNet  MATH  Google Scholar 

  26. Nahmias S (1978) Fuzzy variables Fuzzy sets and systems 1(2):97–110

    MathSciNet  Google Scholar 

  27. Swami S, Shah J (2011) Channel coordination in green supply chain management: the case of package size and shelf-space allocation. Technol Oper Manag 2(1):50–59

    Google Scholar 

  28. Sheu J-B (2011) Bargaining framework for competitive green supply chains under governmental financial intervention. Transp Res Part E Logist Transp Rev 47(5):573–592

    Google Scholar 

  29. Sheu J-B, Chen YJ (2012) Impact of government financial intervention on competition among green supply chains. Int J Prod Econ 138(1):201–213

    Google Scholar 

  30. Barari S, Agarwal G, Zhang WC, Mahanty B, Tiwari M (2012) A decision framework for the analysis of green supply chain contracts: an evolutionary game approach. Expert Syst Appl 39(3):2965–2976

    Google Scholar 

  31. Cao J, Zhang X (2013) Coordination strategy of green supply chain under the free market mechanism. Energy Procedia 36:1130–1137

    Google Scholar 

  32. Zhang C-T, Liu L-P (2013) Research on coordination mechanism in three-level green supply chain under non-cooperative game. Appl Math Model 37(5):3369–3379

    MathSciNet  MATH  Google Scholar 

  33. Zhang C-T, Wang H-X, Ren M-L (2014) Research on pricing and coordination strategy of green supply chain under hybrid production mode. Comput Ind Eng 72:24–31

    Google Scholar 

  34. Huang Y, Wang K, Zhang T, Pang C (2016) Green supply chain coordination with greenhouse gases emissions management: a game-theoretic approach. J Clean Prod 112:2004–2014

    Google Scholar 

  35. Zhang Q, Tang W, Zhang J (2016) Green supply chain performance with cost learning and operational inefficiency effects. J Clean Prod 112:3267–3284

    Google Scholar 

  36. Aydin R, Kwong C, Ji P (2016) Coordination of the closed-loop supply chain for product line design with consideration of remanufactured products. J Clean Prod 114:286–298

    Google Scholar 

  37. Li S, Ahn CK, Xiang Z (2018) Sampled-data adaptive output feedback fuzzy stabilization for switched nonlinear systems with asynchronous switching. IEEE Trans Fuzzy Syst 27(1):200–205

    Google Scholar 

  38. Li S, Ahn CK, Xiang Z (2019) Adaptive fuzzy control of switched nonlinear time-varying delay systems with prescribed performance and unmodeled dynamics. Fuzzy Sets Syst 371:40–60

    MathSciNet  MATH  Google Scholar 

  39. Xu R, Zhai X (2010) Analysis of supply chain coordination under fuzzy demand in a two-stage supply chain. Appl Math Model 34(1):129–139

    MathSciNet  MATH  Google Scholar 

  40. Bilgen B (2010) Application of fuzzy mathematical programming approach to the production allocation and distribution supply chain network problem. Expert Syst Appl 37(6):4488–4495

    Google Scholar 

  41. Pourjavad E, Mayorga RV (2019) Multi-objective fuzzy programming of closed-loop supply chain considering sustainable measures. Int J Fuzzy Syst 21(2):655–673

    MathSciNet  Google Scholar 

  42. Wang W, Cui Y, Peng T, Wang W (2007) Noncooperative power control game with exponential pricing for cognitive radio network. In: 2007 IEEE 65th vehicular technology conference-VTC2007-Spring, IEEE, pp 3125–3129

  43. Chapman AC, Mhanna S, Verbic G (2017) Cooperative game theory for non-linear pricing of load-side distribution network support. In: The 3rd IJCAI Algorithmic Game Theory Workshop

  44. Clempner JB (2019) Optimal level of transfer pricing for profit sharing: a Lagrange regularized game theory approach. Optim Eng 20(3):833–852

    MathSciNet  MATH  Google Scholar 

  45. Hobbs BF, Kelly KA (1992) Using game theory to analyze electric transmission pricing policies in the United States. Eur J Oper Res 56(2):154–171

    Google Scholar 

  46. Zhao J, Tang W, Zhao R, Wei J (2012) Pricing decisions for substitutable products with a common retailer in fuzzy environments. Eur J Oper Res 216(2):409–419

    MathSciNet  MATH  Google Scholar 

  47. Yang D, Xiao T (2017) Pricing and green level decisions of a green supply chain with governmental interventions under fuzzy uncertainties. J Clean Prod 149:1174–1187

    Google Scholar 

  48. Zhao J, Sun N (2020) Government subsidies-based profits distribution pattern analysis in closed-loop supply chain using game theory. Neural Comput Appl 32(6):1715–1724

    Google Scholar 

  49. Taleizadeh AA, Mamaghan MK, Torabi SA (2018) A possibilistic closed-loop supply chain: pricing, advertising and remanufacturing optimization. Neural Comput Appl 32(4):1195–1215

    Google Scholar 

  50. Zhu W, He Y (2017) Green product design in supply chains under competition. Eur J Oper Res 258(1):165–180

    MathSciNet  MATH  Google Scholar 

  51. Basiri Z, Heydari J (2017) A mathematical model for green supply chain coordination with substitutable products. J Clean Prod 145:232–249

    Google Scholar 

  52. Jamali M-B, Rasti-Barzoki M (2018) A game theoretic approach for green and non-green product pricing in chain-to-chain competitive sustainable and regular dual-channel supply chains. J Clean Prod 170:1029–1043. https://doi.org/10.1016/j.jclepro.2017.09.181

    Article  Google Scholar 

  53. Khosroshahi H, Rasti-Barzoki M, Hejazi SR (2019) A game theoretic approach for pricing decisions considering CSR and a new consumer satisfaction index using transparency-dependent demand in sustainable supply chains. J Clean Prod 208:1065–1080

    Google Scholar 

  54. Zhong Q, Wang Z, Hong X (2018) Pricing decisions in a fuzzy supply chain system considering different duopolistic retailers’ competitive behavior. Int J Fuzzy Syst 20(5):1592–1605

    MathSciNet  Google Scholar 

  55. Jamali M-B, Rasti-Barzoki M (2019) A game theoretic approach to investigate the effects of third-party logistics in a sustainable supply chain by reducing delivery time and carbon emissions. J Clean Prod 235:636–652

    Google Scholar 

  56. Liu Y-K, Liu B (2003) Expected value operator of random fuzzy variable and random fuzzy expected value models. Int J Uncertain Fuzziness Knowl Based Syst 11(02):195–215

    MathSciNet  MATH  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Industrial and Systems Engineering, Isfahan University of Technology, 84156-83111, Isfahan, Iran

    Mohammad-Bagher Jamali, Mohammad-Ali Gorji & Mehdi Iranpoor

Authors
  1. Mohammad-Bagher Jamali
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Mohammad-Ali Gorji
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Mehdi Iranpoor
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Mehdi Iranpoor.

Ethics declarations

Conflict of interest

The authors declared that they have no conflicts of interest to this work.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Jamali, MB., Gorji, MA. & Iranpoor, M. Pricing policy on a dual competitive channel for a green product under fuzzy conditions. Neural Comput & Applic 33, 11189–11201 (2021). https://doi.org/10.1007/s00521-020-05567-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00521-020-05567-2

Keywords

Search

Navigation