Dynamic decision intelligence for pricing and delivery time in sustainable supply chains with strategic consumers

Understanding the joint effects of consumers’ strategic behavior and their sensitivity to delivery time, price, and environmental impact remains a crucial yet underexplored issue in supply chain (SC) management. This study investigates a green SC comprising an online retailer, a manufacturer, and consumers who may behave strategically and value shorter delivery times, lower prices, and reduced carbon emissions. We develop analytical models to determine optimal retail pricing, delivery times, wholesale pricing, and carbon emission reduction strategies. In the first model, retail prices are dynamically adjusted, while delivery time is fixed. In contrast, the second model dynamically quotes both the delivery time and the retail price. The analysis also reveals the economic mechanisms by which delivery time flexibility influences pricing incentives, consumer purchasing behavior, and carbon-reduction decisions within the supply chain. The results indicate that when consumers are susceptible to delivery time but less strategic, a dynamic delivery time strategy enhances the retailer's profit while consistently improving the manufacturer's profit across all scenarios. To further align incentives, we propose a cost-sharing contract in which the manufacturer supports the retailer's delivery system costs. This mechanism improves the profitability of both parties and expands the conditions under which the retailer benefits. The findings provide actionable managerial insights into how delivery time, pricing strategies, and carbon-reduction decisions interact within a green SC context.