Pricing and greening decisions of a government-subsidised dual-channel closed-loop green supply chain model with price-dependent collection rate

ABSTRACT

Online shopping has become increasingly popular among customers due to the availability and easy accessibility of electronic devices. Hence, a manufacturer would like to open an online platform with his traditional retail channel. Government subsidies are endogenised in a research joint venture based on recent observations. Here, government subsidies are assumed to increase the production of eco-friendly products to be much more environmental friendly. The retailer and third-party collector collect used products from the customer and return them to the manufacturer for recycling. Demand rates are modelled as linear functions of selling prices and the level of green innovation. The collection rates are considered linear functions of collecting fees and the level of green innovation. The study investigates three decentralised models under three scenarios and the centralised model. A sensitivity analysis is composed to study the effects of the essential parameters. Critical managerial insights have been provided, which is beneficial for the supply chain members. If the cost co-efficient of green innovation can be reduced, then the optimal level of green innovation and the members' profits increase. Again the governmental subsidy is directly proportional to the level of green innovation and the manufacturer's profit.

KEYWORDS:

• Dual channel
• Closed-loop supply chain
• Green innovation
• Government subsidy
• Game theory

Acknowledgements

The authors would like to express their gratitude to the editors and referees for their valuable suggestions and corrections to enhance the clarity of the present article. The corresponding author also acknowledges the Council of Scientific & Industrial Research, Government of India, for financial assistance.

Data availability statement

Data supporting the findings of this study are available within the article.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Brojeswar Pal

Brojeswar Pal is an Assistant Professor in the Department of Mathematics, The University of Burdwan, West Bengal, India. He received his Ph.D. degree from the Jadavpur University, India. He has published several research papers in international journals of repute in the areas of production planning, inventory control and supply chain management.

Amit Sarkar

Amit Sarkar is an Assistant Professor in the Department of Mathematics, Brainware University, West Bengal, India. He was a senior research fellow and received his Ph.D. degree from the University of Burdwan, India. He has published several research papers in international journals of repute in the areas of supply chain management.