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Optimal selection of cleaner products in a green supply chain with risk aversion

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  • In this paper, we investigate the selection of cleaner products with the consideration of the tradeoff between risk and the return of players in two different of supply chain structures: a vertically integrated structure and a decentralized setting. In an integrated supply chain, the price of cleaner products is decided according to the maximum utility for the whole supply chain, while the retailer offers their price with respect to their own maximum utility in a decentralized setting. A numerical example of a green supply chain of household electrical appliances in China is presented to illustrate related issues. Finally, conclusions are drawn and some topics for future work are suggested.
    Mathematics Subject Classification: Primary: 90B30, 90C08; Secondary: 91B30.


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