Green manufacturing in a decentralized supply chain

Abstract

This study analyzes the influence of power structure on pricing, greening decisions, and profits of the channel members in a decentralized supply chain. In order to identify the characteristics of the optimal greening level and the profits of the supply chain members, three different models are developed and analyzed under manufacturer-Stackelberg, retailer-Stackelberg, and vertical Nash game settings. Results from the present study suggest that both the retailer and manufacturer prefers their respective leaderships. But the sales volume is higher in Nash game structure. However, consumer gets more benefits under the retailers’ leadership.