A game theoretic approach to investigate the effects of third-party logistics in a sustainable supply chain by reducing delivery time and carbon emissions.

Environmental crises and increasing pressure from governments are responsible for the appearance of various green approaches to be considered in supply chain management. One of these approaches is sustainable supply chains, which have been implemented in different aspects of supply chains. Most third-party logistics (3 PLs) companies now provide their services utilizing the sustainable supply chain approach. In this study, we consider a 3PL in a supply chain with two goals: decreasing carbon emission and delivery time using a game theoretic approach, which is considered for the first time. We suppose that consumers are aware about the green transportation. Also, it is assumed that two manufacturers deliver their products to the same retailer using a 3 PL. The manufacturers use the 3 PL mainly because it is a way to provide green transportation and increase customer satisfaction by ensuring that products are delivered in a timely fashion to the retailer. This paper examines product pricing, the greenness determination for the first manufacturer's product, and the variables for the 3 PL, including the amount of carbon dioxide emissions and delivery time. Three scenarios are considered in this research: a centralized game and two decentralized games. The results show that it is essential to establish competition between the supply chain members to obtain greater profitability and an acceptable level of sustainability indicators. In the decentralized Stackelberg game between the manufacturers, they earn the highest profit. In the centralized game, the product greenness is the lowest, and in the decentralized game when the 3 PL is the leader, the product greenness is the highest. • The production of one green and one non-green product by two competitor producers. • The producers send products to retailer by using a 3 PL. • Using game theory to investigate the effects of 3 PL in the sustainable SC. • Analyzing the problem with three scenarios: two decentralized and one centralized. [ABSTRACT FROM AUTHOR]