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Green Supply Chain Coordination – A Game Theoretic Approach

In: Proceedings of 2013 4th International Asia Conference on Industrial Engineering and Management Innovation (IEMI2013)

Author

Listed:
  • Yun Huang

    (Macau University of Science and Technology)

  • Kuifun Ip

    (Macau University of Science and Technology)

Abstract

This paper considers the problem of coordinating price, remanufacturing, and configuration decisions in a green supply chain with one manufacturer and multiple suppliers. The manufacturer purchases optional components of certain functionality from his alternative suppliers to produce a set of products to meet the requirements of different markets. Suppliers can procure a quantity of used components, and then remanufacture them or order new materials from external suppliers to serve as inputs of the components. The authors model this problem as a Stackelberg game in which the manufacturer, as a leader, is aware of the optimal decision reactions of his suppliers and can consider these reactions to maximize his own profit. The analytical method and genetic algorithm are utilized to determine the equilibrium of the game. Finally, a numerical example is presented to understand the influence of different parameters on the decisions and profits of the supply chain and its members.

Suggested Citation

  • Yun Huang & Kuifun Ip, 2014. "Green Supply Chain Coordination – A Game Theoretic Approach," Springer Books, in: Ershi Qi & Jiang Shen & Runliang Dou (ed.), Proceedings of 2013 4th International Asia Conference on Industrial Engineering and Management Innovation (IEMI2013), edition 127, pages 625-633, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-40060-5_60
    DOI: 10.1007/978-3-642-40060-5_60
    as

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