Nazanin Abolfazli - Department of Industrial Engineering Amirkabir University of Technology, Tehran, Iran
S.M.T Fatemi Ghomi - Department of Industrial Engineering Amirkabir University of Technology, Tehran, Iran

In this paper, consider the issue of coordination and pricing in single-period green supply chain. It is based on market demand and in this market green product and non-green products co-exist with and substitute each other, and examine the results for two production modes in cooperative game and non-cooperative game. Theoretical analysis show that different production costs will cause the manufacturer decision for choice of production mode when consumers have different evaluations of the products. Furthermore, the results indicate that system performance in cooperative game is evidently better than that in non-cooperative game. The cooperative pricing strategy coordinated by Rubinstein bargaining model can realize the pareto optimization of supply chain system profit and member profits under different production modes. Finally, the numerical example is provided to validate the results.

Pricing, Coordination Strategy, Game Theory, Green Supply Chain