Comparative study of centralized and decentralized scenarios of a three-tiered green supply chain in two-period using the game theoretical approach

The influence of an unorganized sector or micro-retailers in the financial system and sustainable development are becoming highly significant in several countries. Regardless of the fact that such retailers are generally reliant on wholesalers for commerce, the consequences of mediators in green supply chain management have received little attention in the existing studies. A three-tier based green supply chain(GSC) is considered in this study which consists of a manufacturer, a wholesaler and a retailer. The purpose of this investigation is to provide a decision-making structure for the identification and useful implementation of sustainable products by making comparisons of member profits, greening levels, retail prices, and ecological impact under various game structures. A two-period system is introduced to analyze the three-game strategies, especially MS, WS, and RS games. Then a two-period centralized system was implemented. The best possible feasible solution is obtained by comparing the optimal decisions in each game structure and the centralized model. The overall profit of the supply chain and the level of the greening of the products are significantly more significant in the centralized system than in any other game structure. The supply chain members could indeed make compromises on their marginal profit goals to achieve sustainable development. The results may help the supply chain members to implement more sustainability initiatives.