Modelling Sustainable Supply Chain Process Considering Cost-Sharing and Stock-Dependence Demand Under Uncertain Environment.

Abstract Greenhouse gas is one of the major concerns for policymakers and academicians in the modern era. Renewable energy helps to reduce emissions if the industry supply chain is used optimally. Further, there is little understanding of how renewable energy implementation cost and stock dependence simultaneously impact supply chain (SC) profit. Thus, we propose a duopoly sustainable supply chain considering renewable implementation and stock-dependence demand under uncertain environments. A mathematical model is developed for a sustainable supply chain under three scenarios: (i) Renewable energy effort by manufacturer and cost-shared by the retailer (Model M) (ii) Renewable energy effort by retailer and cost-shared by the manufacturer (Model R), and (iii) Renewable energy effort by both retailer and manufacturer and cost-shared by the manufacturer and retailer (Model C). Nash equilibrium was used to find optimal strategies for players under different integrated channels. The result finds that Model M is comparatively better than the other two models as cost-sharing increases. The result additionally establishes that the total profit decreases as the cost of sharing increases in Model C and Model R, whereas it increases in Model M.