Decentralized Channel Decisions of Green Supply Chain in a Fuzzy Decision Making Environment

This paper considers the greening policies in a decentralized channel between one manufacturer and one retailer in a fuzzy decision making environment. We consider the manufacturing cost and the parameters of demand function as the fuzzy variables. Based on the different market structures, we develop three different fuzzy decentralized decision models. For each case, the expected value, optimistic value and pessimistic value models are formulated, and their optimal solutions are also derived through the fuzzy set theory. Finally, three numerical examples are solved to examine the effectiveness of fuzzy models. The effects of the confidence level of the supply chain member’s profits and the fuzziness of parameters on optimal prices, level of green innovation, and fuzzy expected profits of actors are also analyzed.