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

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.