Pricing decision in an uncertain green product supply chain under cost sharing contract

As the understanding of environmental responsibility deepens among enterprises and the government tightens environmental regulations, the green supply chain becomes trendy. In the present study, an investigation is conducted into a two-echelon green product supply chain consisting of one manufacturer and one retailer. Due to the complexity of the dynamic network structure of the supply chain, there are various uncertain factors that cannot be obtained probability distributions, and these parameters are considered as uncertain variables. With the help of the uncertainty theory, we construct chance constrained models for both centralized and decentralized decision-making. The models also consider both the green level and the sensitivity of customers to green. To explore the impact of cost sharing contract on uncertain models, we also establish cost sharing model and bargaining model. According to the results of theoretical analysis, equilibrium decisions can be achieved by solving the models. Finally, numerical experiments have shown that the proposed contract is beneficial for improving the green level of products and the overall profit of the supply chain in uncertain environments. It can also be seen that decision-makers can significantly increase the profits of the manufacturer at a high level of confidence, but the increase in profits for the retailer is not significant. In addition, compared to decentralized decision-making, the bargaining strategy will enable the retailer to gain more profits.