A Multi-Objective Optimization Model for Green Supply Chain Considering Environmental Benefits

Jie Jian, Yu Guo, Lin Jiang, Yanyan An and Jiafu Su
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Jie Jian: School of Economic and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China
Yu Guo: School of Economic and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China
Lin Jiang: School of Economic and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China
Yanyan An: School of Economic and Management, Chongqing University of Posts and Telecommunications, Chongqing 400065, China
Jiafu Su: Chongqing Key Laboratory of Electronic Commerce & Supply Chain System, National Research Base of Intelligent Manufacturing Service, Chongqing Technology and Business University, Chongqing 400067, China

Sustainability, 2019, vol. 11, issue 21, 1-20

Abstract: Whether the upstream and downstream members in a supply chain (considering environmental objectives) simultaneously stabilize economic benefits has become an important problem in the process of green development. However, few quantitative studies on green supply chains have considered environmental and economic benefits to realize multi-objective optimization. To study operation and cooperation strategies with a consideration of the different objective on the level of supply chain, we first establish a green supply chain game model with profit and environment objectives simultaneously considered by the manufacturer. Then, we analyze the multi-objective decisions of the supply chain members under centralized control using a manufacturer-led Stackelberg game and revenue-sharing contract. Using the manufacturer’s environmental preference as a variable, the effects of environmental benefits on the supply chain are also investigated. Finally, this study determines that the manufacturer’s profit will be reduced after considering the objective of environmental benefits, while the retailer’s profit, product greenness, and environmental benefits will be improved. Meanwhile, the total profit of the green supply chain will first increase and then decrease. In particular, a revenue-sharing contract can facilitate the coordination of multiple objectives; in this way, both the manufacturer and the retailer achieve higher profits and environmental benefits compared to a decentralized control condition, which is of great significance in achieving a win–win situation for the economy and the environment.

Keywords: green supply chain; environmental benefits; multi-objective optimization; game model; revenue-sharing contract (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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