Production decision and coordination of closed-loop supply chain with carbon reduction technology
ZHANG Jiefang1, CAO Xiyu2
1.School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China;2.Zhongshan College, University of Electronic Science and Technology of China, Zhongshan, Guangdong 528402, China
Abstract:With a two-echelon closed-loop supply chain consisting of one manufacturer and one retailer responsible for recycling taken into consideration, the closed-loop supply chain production decisions and the coordination under different situations (unconstrained condition, considering the carbon emission reduction technology and considering subsidies for carbon emission reduction) are studied. Then comparison and numerical analysis are made. The results indicate that the combination of the two-part tariff contracts and payment transfer mechanisms are able to achieve system coordination; under the unconstrained condition, the carbon emission reduction technology and subsidies, the optimal profit and quantity gradually increases, while the unit of carbon emissions quantity gradually decrease and the recycling price remains unchanged; the carbon emission reduction investment coefficient is always negatively related to the carbon emission reduction quantity, while the production and system profits as well as carbon emissions per unit product are always positively related to carbon emission reduction investment coefficient; the manufacturer's profit is a decreasing function of carbon emission reduction investment coefficient under certain conditions, or otherwise an increasing function.