Price Decision Making in a Centralized/Decentralized Solid Waste Disposal Supply Chain with One Contractor and Two Disposal Facilities

Abstract

Solid waste management has been an interesting topic for researchers in few last decades. This paper studies a price-sensitive demand for the waste disposal service of two disposal facilities who are dealing with a contractor to gain more profit. The waste disposal process is studied in a supply chain structure where a contractor manages to collect the waste from the producers and transport them to the facilities for disposal. Two scenarios are proposed where at the first one the disposal facilities lead a price Stackelberg game over the contractor, and in the second scenario, both disposal facilities and the contractor cooperate on the chain decision variables in an integrated framework. A numerical example is performed to illustrate the efficiency and applications of the proposed model.