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Supply chain coordination model with  time-varying demand depending on stock and selling price under carbon tax regulation

ZHANG Yuzhong BAI Qingguo1,*   

  1. 1. Institute of Operations Research, School of Management, Qufu Normal University, Rizhao 276826, Shandong,  China
  • Received:2017-04-17 Online:2017-06-15 Published:2017-06-15

Abstract:

This paper considers a two-echelon supply chain system consisting of one supplier and one retailer under carbon tax regulation. When the time-varying demand rate of retailer is dependent on stock level and selling price, the decentralized and centralized models are constructed and compared. The result shows that cooperation between supplier and retailer lead to higher profit and more carbon emissions. Wholesale price contract and two-part tariff contract are respectively used to coordinate the decentralized supply chain.  Several conditions that the supply chain can be coordinated by two-part tariff contract are also obtained.  Finally, several numerical examples are provided  to verify the theoretical results and impacts of carbon tax price on supply chain coordination under two-part tariff contract are analyzed.

Key words: supply chain coordination, Stackelberg game, carbon tax, time-varying demand