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A game theoretic approach for analyzing financial intervention models in dairy green supply chains with freshness-keeping effort

Author

Listed:
  • Sepideh Khalafi

    (Iranians University an e-Institute of Higher Education)

  • Ashkan Hafezalkotob

    (Islamic Azad University)

  • Davood Mohammaditabar

    (Islamic Azad University)

  • Mohammad Kazem Sayadi

    (Iran Telecommunication Research Center)

Abstract

Transportation and packaging of cool chain have major role in social demands of the fresh green high-level product for perishable supply chain (SC) to be regarded in SC management. In the present study, we evaluated a Third-Party Logistics (3PL) operator in a dairy SC that requires a costly freshness-keeping effort (FKE) through the transportation process. We assume that a manufacturer makes dairy products via a 3PL to a marketplace where a retailer buys and resells them to the end consumers. In addition, it is supposed that the demand of the market is random, sensitive to the freshness level of the product as well as the price. In this study, Consumers and Producers Protection Organization (CPPO) as the leader tracks incremental dairy consumption program based on three strategies which are FKE (fresh-keeping), pricing (economic), and social welfare (social), that is mentioned for the first time. Six scenarios are presented in this paper: three decentralized games and three centralized games. The consequences indicate that it is extremely important to collaborate between the members of SC to acquire fresher products. Also, if the CPPO uses a subsidy for 3PL, customer demand for the product increases which leads to higher SC members’ profit among decentralized scenarios. On the other hand, if the CPPO uses a subsidy for retailer, and both 3PL and retailer invest in freshness-keeping, customer demand for the product increases which leads to more an increase in the whole SC's profit among centralized scenarios.

Suggested Citation

  • Sepideh Khalafi & Ashkan Hafezalkotob & Davood Mohammaditabar & Mohammad Kazem Sayadi, 2024. "A game theoretic approach for analyzing financial intervention models in dairy green supply chains with freshness-keeping effort," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17131-17156, July.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:7:d:10.1007_s10668-023-03330-w
    DOI: 10.1007/s10668-023-03330-w
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    References listed on IDEAS

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