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Competition of Forward and Reverse Supply Chain for Selling Two Substitutable Products: Novel Game Theory Approach

Author

Listed:
  • Animesh Mondal

    (Sardar Vallabhbhai National Institute of Technology)

  • Dipak Kumar Jana

    (Haldia Institute of Technology, Haldia Purba Midnapur-721657)

  • Ranjan Kumar Jana

    (Sardar Vallabhbhai National Institute of Technology)

Abstract

Nowadays, most people are concerned about environmental pollution. So, utilizing eco-friendly products is on the rise in society. There is a trend going on among the companies to make green products. However, some companies produce non-green substitutable products in the environmentally concerned market. Therefore, examining how these two organizations compete in the market is necessary. This paper analyzes the competition between two supply chains, a forward chain and a reverse chain for the very first time. Each chain is constituted of one manufacturer and one retailer. The first manufacturer of the forward chain makes a green product, whereas the second manufacturer of the reverse chain makes a substitutable non-green product. In addition, for non-green products, the second manufacturer offers a warranty period for refurbishing defective items. Two game theory models (centralized and decentralized) are developed and compared for the competition among manufacturers and retailers involved in two supply chains. In the competitive market, how the two manufacturers and retailers set their pricing strategies, greening level, and the warranty period are investigated. Finally, numerical and sensitivity analyses have been performed to examine the effect of various parameters on key decision variables of the supply chain problem.

Suggested Citation

  • Animesh Mondal & Dipak Kumar Jana & Ranjan Kumar Jana, 2022. "Competition of Forward and Reverse Supply Chain for Selling Two Substitutable Products: Novel Game Theory Approach," SN Operations Research Forum, Springer, vol. 3(4), pages 1-34, December.
    • Handle: RePEc:spr:snopef:v:3:y:2022:i:4:d:10.1007_s43069-022-00175-3
    DOI: 10.1007/s43069-022-00175-3
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    References listed on IDEAS

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