Research On Low Carbon Supply Chain Decisions And Coordination With Green Technology Investment

In recent years, carbon dioxide and other greenhouse gases emissions caused by human activities have increased dramatically, leading to the global climate warming which caused serious threat to the global ecological system and human beings. As an important subject of human activity, enterprises have faced many challenges in terms of undertaking the responsibility for climate change. On the one hand, in order to encourage enterprises to save energy and reduce emissions, the government has set the cap-and-trade policy which may affect the enterprises’ decisions. On the other hand, green technology investment has also made the traditional production and order decision become more complicated. In addition, the enterprises participate in market competition based on the supply chain. So that only by researching enterprise decision-making in the perspective of supply chain can we truly achieve carbon reduction and mitigation of climate change. Furthermore, as dynamic pricing has frequently used in the perishable product sales, it has made customers have strategic behavior, and can also affect the enterprise decisionmaking. Therefore, researching the low carbon supply chain enterprises’ decision-making and coordination problems with green technology investment considering the characteristics of the strategic customer behavior has important theoretical and practical value.Under cap-and-trade policy, and considering the characteristics of the strategic customer behavior, this thesis firstly studies the decisions of single manufacturer with and without the green technology investment in two scenarios. Then, it expands the single manufacturer to the two echelon supply chain consisting of a manufacturer and a retailer, and studies the supply chain decisions and coordination.First of all, studies the manufacturer’s decisions without green technology investment. The results show that:(1) in two situations of rational expectations equilibrium and quantity commitment, manufacturer has a unique optimal production and pricing strategy under cap and cap-and-trade policy;(2) under cap policy, according to the quantity of carbon emissions quota, quantity commitment can make the manufacturer’s production decreasing or unchanging, pricing increasing or unchanging and maximum expected profit increasing or equivalent;(3) under cap-and-trade policy, no matter how much the carbon emissions quota is, quantity commitment can make the manufacturer’s optimal production decreasing, optimal pricing increasing and maximum expected profit increasing.Secondly, studies the manufacturer’s decisions with green technology investment. The results show that:(1) in two situations of rational expectations equilibrium and quantity commitment, manufacturer has a unique optimal production, pricing and green technology investment strategy under cap and cap-and-trade policy when model parameters satisfy certain conditions;(2) under cap and cap-and-trade policy, no matter how much the carbon emissions quota is, quantity commitment can make the manufacturer’s optimal production decreasing, optimal pricing increasing, optimal green technology investment increasing and maximum expected profit increasing.Thirdly, this thesis studies the decisions and coordination of supply chain consisting of a manufacturer and a retailer without green technology investment. The results show that:(1) under cap and cap-and-trade policy, there exist the optimal wholesale price, retail price, and ordering quantity in decentralized supply chain;(2) under cap and cap-andtrade policy, the optimal ordering quantity, retail price of decentralized supply chain is less than or equal to and is more than or equal to the centralized supply chain;(3) under cap and cap-and-trade policy, taking the situation of centralized(quantity commitment) as a benchmarking, we design the supply chain coordination strategy by revenue sharing contract and find the scope of the revenue sharing proportion when it achieves Pareto improvement.Finally, this thesis studies the decisions and coordination of supply chain with green technology investment. The results show that:(1) under cap and cap-and-trade policy, there exist the optimal wholesale price, retail price, and ordering quantity of supply chain when model parameters satisfy certain conditions;(2) under cap and cap-and-trade policy, no matter how much the carbon emissions quota is, the manufacturer’s optimal green technology investment and retailer’s optimal ordering quantity are less than, retailer’s retail price is more than and the maximum expected profit of supply chain is less than the situation of centralized supply chain;(3) under cap and cap-and-trade policy, taking the situation of centralized(quantity commitment) as a benchmarking, revenue sharing contract cannot coordinate the supply chain. Considering the manufacturers taking the quantity commitment, we design the supply chain coordination strategy respectively under cap and cap-and-trade policy based on the revenue sharing- cost sharing contract.Furthermore, we also get the following important management enlightenment by comparative analysis and numerical simulation:(1) The cap policy is a hard constraint for manufacturers. As long as the carbon emissions quota is less than the emissions without carbon constrains, whether or not considering the green technology investment, the optimal production of the manufacturers is decreasing. However, the cap-and-trade policy offer more flexible to the enterprise, as the supply chain operation decision under cap-and-trade policy has nothing to do with the carbon emissions quota. Nevertheless, whether the maximum expected profit of supply chain under cap-and-trade policy is more than(equal to or less than) that under cap policy depends on the quota of carbon emissions. It suggests that cap-and-trade policy can play the roles of government regulation and market adjustment function at the same time to make the enterprise reduce carbon emissions.(2) Green technology investment can also provide flexible for supply chain decisions. It makes the supply chain’s optimal production increases, the optimal price decreases and the optimal carbon emissions of unit product decreases. We also found that considering green technology investment is always able to increase the profit of the decentralized supply chain.(3) Revenue sharing contract is one of the common contracts of supply chain coordination, but based on strategic customer behavior, the traditional revenue sharing contract cannot coordinate the supply chain when considering the green technology investment. Because the manufacturer has undertaken all the green technology investment costs but is unable to gain all of the increased revenue. Therefore, when designing supply chain cooperation mechanism, we should consider the cost sharing in addition to the revenue sharing, so as to achieve the optimal of whole supply chain.