Pricing policy in green supply chain design: the impact of consumer environmental awareness and green subsidies

Maryam Shoaeinaeini (), Kannan Govindan () and Donya Rahmani ()
Additional contact information
Maryam Shoaeinaeini: K. N. Toosi University of Technology
Kannan Govindan: Shanghai Maritime University
Donya Rahmani: K. N. Toosi University of Technology

Operational Research, 2022, vol. 22, issue 4, No 27, 3989-4028

Abstract: Abstract This paper presents a mixed-integer non-linear programming model to design a green closed-loop supply chain comprising hybrid plants, hybrid collection centers, customer zones, secondary markets, and disposal centers. To ensure a smooth reverse flow, our model determines a return rate for each customer zone with respect to the consumers’ environmental awareness and the optimal acquisition price offered for returned products. Considering the environmental awareness levels and optimal green levels, specific cost and price functions for green products are proposed. Further, government subsidy as a financial incentive for manufacturers is considered to make the model more realistic and challenging. The effectiveness of the proposed model is analyzed by an illustrative example generated based on an Iranian straw factory. Beneficial managerial insights are obtained by conducting several sensitivity analyses. Further, the illustrative example and several generated examples in all scales are assessed by Sine Cosine Crow Search Algorithm using an efficient solution representation based on the priority-based encoding. As there is no benchmark available in the related literature to validate the results of Sine Cosine Crow Search Algorithm and to evaluate its performance, Particle Swarm Optimization and Genetic Algorithm are utilized to solve the examples. Finally, the obtained results of different metaheuristic algorithms and the exact solution are compared in terms of the CPU time and the objective function value.

Keywords: Green supply chain; Consumer environmental awareness; Acquisition price; Return rate; Government subsidy (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s12351-021-00680-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:operea:v:22:y:2022:i:4:d:10.1007_s12351-021-00680-z

Ordering information: This journal article can be ordered from
https://www.springer ... search/journal/12351

DOI: 10.1007/s12351-021-00680-z

Access Statistics for this article

Operational Research is currently edited by Nikolaos F. Matsatsinis, John Psarras and Constantin Zopounidis

More articles in Operational Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().