Abstract
Due to the public environmental awareness arising and legislative requirements, firms are forced to adopt sustainable supply chain management. Green supply chain management (GSCM) is emerged as a systematic solution for firms to maintain competiveness. Besides, service-providing is another strategy which is commonly adopt by manufacturers to improve their competitiveness. Numerous researches have investigated the effects of service and consumer environmental awareness on supply chains, while few studies have discussed the intersections between service and consumer environmental awareness. A supply chain consisting of two manufacturers and a retailer is considered in this thesis. Assume that the first manufacturer is an original equipment manufacturer (OEM) that produces new product, while the second manufacturer is the remanufacturer producing refurbished products. Both manufacturers sell products to a common retailer and provide service to their end consumers. Consumer demand is influenced by three factors: (1) retail price, (2) service and (3) the efforts of eco-friendly operations. Hence, we provide a Stackelberg game model which is used to represent the decision-making of manufacturers and the retailer. The objective is to find optimal pricing policies to maximize their profits of all members in this supply chain. We also derive the corresponding existence and uniqueness conditions for equilibrium solutions. Furthermore, we extend the proposed model and take the consumer stochastic demand as well as the costs of goods shortage and salvage value of unsold products into account. Finally, numerical examples are provided and demonstrate the results as follows: (1) manufacturers can improve their profit by increasing the service level or eco-friendly level; (2) manufacturers’ profit may not increase with the consumer green awareness; and (3) manufacturers should adopt different production strategies under different situation to maximize their own profit when facing demand uncertainty.