Designing an optimal sustainable supply chain system considering pricing decisions and resilience factors

Nowadays, sustainability has become an integral part of industries and supply chains, which are facing the risk of unpredictable disruptions. Therefore, the capability of the supply chains to thwart the harmful effects of disruptions using preventive and recovery policies cannot be neglected. In this respect, this study addresses bi-level programming to optimize a sustainable supply chain by considering resilience factors and pricing decisions. Moreover, it is defined how the governments can optimize and affect environmental and social responsibility by setting an emissions tax rate. In the developed model, Stackelberg game model is employed while the government is considered as the leader and the manufacturer as the follower. Furthermore, the results of the model are compared with the centralized one indicating that the centralized model will result in a better solution for both the manufacturer and the government. Moreover, the results express that keeping emergency stock strategy always is suggested but considering multiple suppliers and extra reserved capacity are not always preferable for mitigating the adverse effect of disruptions in the investigated case study. For highlighting the efficiency of the proposed model, it has been implemented in a real case, and the managerial insights ensuing from the results of the case study are provided.