Sustainable dual-channel supply chain model with circular economic index, green and price sensitive demand

A non-green manufacturing process can destroy the environment rapidly and it creates global warming. On the other hand, green production processes and circular economic products can reduce environ mental pollution. Waste management through reuse, recycling, etc., is equally crucial for a healthy ecosystem and for saving natural resources. So, circular economic product based green manufacturing model development is very important in the current situation which can apply to the manufacturing industry. For this, a circular economic and green product based dual supply chain model is developed in this study. Here, three supply chain participants (manufacturer, online retailer and offline retailer) are considered where the manufacturer produces circular economic green products and fulfils the customers’ demand by retailers. For the online channel, the retailer purchases the products from the manufacturer and sales to the customers through online mode. But in the offline channel, the retailer completed the same tasks through offline mode. Also, it is assumed that the market demand is dependent on retailers’ selling price, product’s green level and circular economic index. Moreover, the retail price is influenced by the circular economic index. Then four different problems are proposed that maximizes the profits of manufacturer, retailers (online and offline) and integrated supply chain system and solved by centralized and decentralized methods. The objective of this study is to determine the optimal selling prices, product’s green level and circular economic index which maximizes the profits of the supply chain members. Finally, sensitivity analysis is carried out to determine the effects of model parameters on the optimal policy and draw a fruitful conclusion from this study.