Green supply chain coordination with greenhouse gases emissions management: a game-theoretic approach

The negative impact of greenhouse gases emissions on the environment has recently received considerable attention by both industry and academia. Companies and researchers strive to find new and innovative methods to reduce greenhouse gases emissions across all the stages of their green supply chains. The previous studies generally, employed integrated models for greenhouse gases emissions management in green supply chains. These models neglected the conflict and coordination among different supply chain members. Furthermore, as important practices to make the companies more adapted for the environment, product design, supplier selection, and logistics process are seldom studied in previous research. In this paper, we consider a green supply chain with multiple suppliers, a single manufacturer and multiple retailers. A game-theoretic model is established to simultaneously investigate the impacts of the product line design, supplier selection, transportation mode selection and pricing strategies on profits and greenhouse gases emissions. Genetic algorithm is applied to obtain the solution of this model. The proposed model and generated results can provide decision makers with a better tradeoff between profit and environmental impacts. A case study of air conditioner manufacturer in China is performed to illustrate the effectiveness of the proposed methodology. Several interesting findings are accordingly obtained. (C) 2015 Elsevier Ltd. All rights reserved.