TITLE:
Coordination Contracts for Two-Echelon Supply Chain with Price-and-Carbon-Emission Dependent Demand
AUTHORS:
Lu Li
KEYWORDS:
Demand, Price, Carbon Emission, Coordination Contract
JOURNAL NAME:
Modern Economy,
Vol.7 No.5,
May
18,
2016
ABSTRACT: As consumers’ demand
for low carbon products is growing, we develop a two-echelon supply chain with
price-and-carbon-emission dependent demand consists of a dominant manufacturer
and a retailer, and compare the optimal price and carbon emission and profit
under the centralized and decentralized scenarios. Based on the manufacturer
who wants to coordinate the whole supply chain, two different coordination
contracts are proposed. We find that these two contracts not only improve
profits of both sides, but also have the effect of carbon reduction. Finally we
validate the effectiveness and environmental of these contracts through
numerical examples.