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

Gang Xie; Wuyi Yue; Shouyang Wang

doi:10.3934/jimo.2015.11.515

Article Contents

2015, Volume 11, Issue 2: 515-528. Doi: 10.3934/jimo.2015.11.515

This issue Previous Article Pricing and hedging catastrophe equity put options under a Markov-modulated jump diffusion model Next Article A new method for strong-weak linear bilevel programming problem

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

1.
Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190
2.
Department of Intelligence and Informatics, Konan University, 8-9-1 Okamoto, Kobe 658-8501
3.
Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing, 100190

Received: January 31, 2013

Revised: March 31, 2014

Published: March 2015

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Abstract

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.

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Mathematics Subject Classification: Primary: 90B30, 90C08; Secondary: 91B30.

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