Pricing strategy and return policy of one-echelon green supply chain under both green and hybrid productions

In this paper, we investigate the pricing and return policy issue of one-echelon green supply chain. The assumed supply chain contains a manufacture that produces two types of products: green and non-green products. These products represent the same function but in selling price and environmentally issues have different effects. The assumed return policy for both products stimulates the customer valuation. Different models of pricing strategy and return policy are developed in both green and hybrid production modes. System performance in both hybrid and green production mode are studied, and the return policy and its effect on these production modes are investigated. The optimal solutions are derived and several numerical examples and sensitivity analysis are performed to demonstrate the applicability of the developed model and its solution method.