Order policy and coordination in supply chain based on carbon emissions quotas
QIN Yanhua1, CAO Xiyu1, XU Zhaofeng1, ZHANG Jiefang2
1.Zhongshan College, University of Electronic Science and Technology, Zhongshan, Guangzhou 528402;2.School of Management and Economics, University of Electronic Science and Technology, Chengdu 611731
Abstract:Controlling carbon emissions is a global problem urgently to be solved. Carbon emissions quotas are important influence to enterprise's production operation. A supply chain composed of manufacturer and a retailer is considered in this paper. The order policy and supply chain coordination problem based on the quantity discount contract are researched under different carbon emissions quotas (only retailers carbon emissions quota restriction, only manufacturer carbon emissions quota restriction, manufacturers and retailers have carbon emissions quotas at the same time constraints). The supply chain models with game theory methods, through the contrast analysis of centralized and decentralized supply chain models, the optimal ordering strategy and coordination conditions of the supply chain is given. The results show that supply chain coordination is able to be achieved with quantity discount contract under different carbon emissions quota restriction; when carbon emission quota is considered in only retailers, only the manufacturer and both manufacturers and retailers, respectively, the optimal order quantity of the supply chain is determined by the order quantity decided by carbon emissions quotas, and carbon emissions quota will also impact the expected profit of supply chain.