A sustainability and profitability optimization model in three-stage green supply chains under uncertainty with competitive and cooperative game dynamics

Abstract

This research explores the integration of sustainability into green supply chain management (GSCM) under uncertainty by focusing on third-party logistics (TPL) services. We propose a three-stage green supply chain (TS-GSC) involving two manufacturers producing substitute green products, a TPL provider, and two retailers. Four scenarios are constructed to analyze the impact of competitive and cooperative dynamics on product pricing, greening degree, ${\mathrm{CO}}_2$ emissions, and delivery time. This study globally maximizes each stakeholder’s expected net profit in every decision-making scenario by applying fuzzy parameters’ defuzzification with fuzzy possibility measures. The results highlight that cooperation between retailers can lead to increased ${\mathrm{CO}}_2$ emissions and longer delivery time, while cooperative manufacturers enhance product greening but raise prices. Competition tends to lower prices and a compromised product greening. The scenario with two competing manufacturers and two competing retailers maximizes profitability and balances pricing, greening, emissions, and delivery time. The study provides managerial insights for achieving consumer satisfaction, profitability, and sustainability in the TS-GSC system.