Impact of renewable energy on Stackelberg gamming approach for manufacturer and retailer for a multistage sustainable production inventory model

Integrating renewable energy sources into industrial operations has become pivotal for achieving sustainable development goals. This work investigates the effect of renewable energy adoption on the Stackelberg gaming approach between a manufacturer and a retailer within a multistage sustainable production inventory model. To Incorporate environmental concerns and qualities, a joint effect of preservation and Green Technology co-investment is studied in this paper between retailer and manufacturer under carbon tax regulation policy. In this paper, first, we define the total profit for both retailers and suppliers under carbon tax regulation and then consider a Retailers (leader)-Manufacturer’s (follower) Stackelberg game. Moreover, in this study, the order cost and setup cost reduction investment are considered. This study provides the optimal decision for manufacturers and retailers to invest in the preservation and green technology. Utilizing soft computing techniques in MATHEMATICA 12.0, we develop and analyze the model, emphasizing the strategic interactions between the manufacturer and retailer. The findings reveal that renewable energy adoption significantly impacts cost reduction and sustainability performance, providing valuable insights for decision-makers in the supply chain. A numerical experiment is demonstrated to validate the mathematical formulation, followed by sensitivity analysis to observe how various parameters influence total profit.