Product pricing problem in green and non-green multi-channel supply chains under government intervention and in the presence of third-party logistics companies

Over the past decades, the significant adverse effects of economic and industrial human activities on the environment have led to the introduction of sustainability and sustainable development concepts. Based on the principles of sustainable development, in a decision/production process, managers and policymakers should not only have economic concerns but also consider social and environmental issues. In this regard, local and national governments have been convinced to intervene in supply chains mostly by imposing subsidies and/or taxes to make their activities more sustainable. Accordingly, designing sustainable supply chains has turned into a critical issue for both managers and researchers in different industries. Transportation and distribution represent two of the most unsustainable steps in any supply chain; cooperation with Third-Party Logistics (3PL) companies could help to make these steps sustainable. The main purpose of this study is to investigate the issue of sustainable supply chain management under the presence of the government and through the application of an outsourcing strategy to a 3PL company in the transportation sector. The problem is studied according to different formats of competition, decision-making, number of players, and public awareness. Considering different decision structures, the game theory is applied to model the problem and obtain the equilibrium values. Finally, a sensitivity analysis is conducted on each model, and some numerical examples are solved to show how applicable the models are. The results show that cooperation with 3PLs in a supply chain enhances the public awareness about environmental issues and promotes the sustainability of the supply chain. Governmental tariffs can also serve as practical tools to push supply chains towards sustainable strategies.