Design of a Green Supply Chain Based on the Kano Model Considering Pricing

Abstract

Nowadays, the design of supply chain networks should be based on environmental issues as well as the needs of customers since the main driver of a supply chain network is customers. Continuous innovation of products requires understanding the features that are most important to customers, and product pricing should be carried out in a way that includes the satisfaction of both customers and manufacturers. This study uses the Kano model to classify product features into different categories. The design of the green supply chain network based on the Kano model has not been investigated in the literature so far. This study examines a green supply chain network including multiple manufacturers, product types, distributors, and carriers that is designed based on Kano’s conceptual model of multiple needs. In the proposed mathematical model of this paper, customer demand is a function of the selling price of the product, transportation pollution is minimized, and a solution based on the Cooperative Game Theory approach is used to solve the mathematical model using the GAMS software. One of the advantages of the proposed mathematical model in this research compared to other supply chain models is that the design needs of the supply chain network based on the Kano model (“must-be”, “one-dimensional”, “attractive” and “indifferent”) can be determined based on customer satisfaction. In addition, the price of the product can be determined according to the satisfaction of both customers and the manufacturers.