An improved shapley value method for a green supply chain income distribution mechanism

Abstract

Low-carbon development and environmental remediation are key factors for green resource-based supply chains in China. With this aim in mind, by applying game theory under uncertain market demand, this paper incorporates low-carbon development and environmental remediation into a resource-based supply chain coordination model for decentralized and centralized markets. The results show that a centralized market can lead to improvement in total profit. Furthermore, based on an improved Shapley value method, a theoretical model for the centralized market income distribution mechanism is developed that incorporates three corrective risk factors, ecological investment, and technological level. Finally, a numerical analysis is conducted using a MATLAB simulation to obtain intuitive results, which, in turn, show the validity of incentive income distribution mechanisms for green supply chain development in China.