A Study Of Green Supply Chain Decision Making Considering Equity Concerns In An Uncertain Environment

With the increasing awareness of environmental protection and the gradual increase of consumers’ awareness of green consumption,enterprises have started to develop and produce green products.The development,design and manufacturing of green products increase the costs of supply chain members,resulting in relatively high prices for green products,thus limiting the expansion of green product markets.Therefore,the decision on the level of greenness and pricing equilibrium of products becomes a decision problem that supply chain member companies must face.For supply chain member firms producing new green products,they also face uncertainty about the manufacturing cost of the products and market demand,while the prevalence of equity concern behavior among supply chain member firms further increases the difficulty of green supply chain decision making.In the uncertain environment,the greenness and pricing decision of the product when the supply chain member firms have the general fair concern behavior becomes a hot issue of current research.Therefore,this paper investigates the greenness and pricing decisions of green supply chain members with fair concern behavior under the perspective of uncertain environment.Based on uncertainty theory and game theory,this paper develops a centralized decision making and Stackelberg game decentralized decision making model for a second-level green supply chain consisting of a single manufacturer and a single retailer to investigate the effects of the degree of uncertainty of five uncertain variables,including the unit production cost and market demand parameters of green products,on product greenness and pricing decisions and profits of green supply chain members in an uncertain environment.At the same time,considering the fairness concern behaviors prevailing among supply chain members,the impact of fairness concern degree as on green supply chain decision and utility under five uncertain environments is further investigated.The following main conclusions were drawn: under the uncertain environments,both product greenness and overall supply chain profit were higher in the centralized decision mode than in the decentralized decision.Among the five uncertain variables,the degree of uncertainty in the coefficient of green R&D costs and the coefficient of consumer sensitivity to product prices have a negative effect on product greenness and pricing decisions as well as supply chain profits.Under the uncertain environment,product greenness,pricing,and manufacturer utility increase with higher environmental uncertainty,but there are significant differences in the effects of environmental uncertainty on retailer utility under different decision makers’ fair concern behaviors;under each uncertain environment,both manufacturers’ and retailers’ unilateral fair concern behaviors decrease product greenness,increase their own utility,and decrease each other’s utility,and The retailer’s fair concern behavior has a greater impact on product greenness and pricing decisions.However,product greenness,price and utility of both parties tend to decrease with the simultaneous increase of fairness concern of both parties.Although the fair concern behavior can achieve the redistribution of benefits,it also has a negative impact on the utility of supply chain members.Therefore,green supply chain management decision makers should actively adjust the adverse effects brought by irrational factors,pay more attention to the green level of products and the overall benefits of the supply chain,and promote the maximization of the overall benefits of the supply chain and its long-term stable development.