Table 2

Parameters of the model

SymbolDefinitionSymbolDefinition
aBasic market demand, a>0τSubsidy amount per unit of product greenness
εRandom demand caused by market uncertaintyπMijProfit of the manufacturer in supply chain i under subsidy policy j
σStandard deviation of random market demand, σ>0E(πMij)Expected profit of the green manufacturer in supply chain i under subsidy policy j
βCompetition intensity between supply chains, 0<β<1U(πMij)Utility of the green manufacturer in supply chain i under subsidy policy j
γConsumers' green preference coefficient, 0<γ<1πRijProfit of the retailer in supply chain i under subsidy policy j
DijMarket demand of the product of supply chain i under subsidy policy jE(πRij)Expected profit of the green retailer in supply chain i under subsidy policy j
θgjGreenness level of the green product under subsidy policy j; decision variableπijProfit of supply chain i under subsidy policy j
ωijWholesale price of the product in supply chain i under subsidy policy j; decision variablesjGovernment subsidy amount under subsidy policy j
pijRetail price of the product in supply chain i under subsidy policy j; decision variableπHjEnvironmental benefit under subsidy policy j
φRisk-aversion coefficient of the green manufacturerπJjEconomic benefit under subsidy policy j
μSubsidy coefficient of the product retail priceπZjComprehensive benefit under subsidy policy j

Note(s): i=n,g denote the conventional supply chain and the green supply chain, respectively; j=O,P,G denote the no-subsidy policy, the price-subsidy policy, and the green-subsidy policy, respectively

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