The Profit And Profit Allocation Model Of Green Supply Chain

The Traditional industry functioned just as a double-edged sword. While bringing the fortune and civilization to humans, it also created huge resource-consume and pollution. Since 1990s, the "green" conception has been prevailing through the global industry structure. However, there would be no green products at all if only one company implements the environment management, it needs all companies' efforts during the whole life cycle of the products. Green supply chain management appears upon such background which takes all economic, environmental and social benefits into consideration, compared with the traditional supply chain management which cares about pure economic benefits only.In order to distinguish green supply chain from traditional supply chain , a green supply chain profit model is firstly established, then the optimization methods and the environmental costs are expatiated afterwards. In order to keep the balance of profit allocation and the stability of the green supply chain, the green supply chain's principal parts, the relationships between added value and environmental burden along the supply chain are particularly analyzed. Two profit allocation models are put forward, namely value added model and output sharing model. Finally allocation results are negotiated .One of the most important factors which effect the profit allocation ---environmental performance is quantitatively discussed in the output sharing model. In order to display the rationality of profit allocation results after considering environmental performance, this paper comparatively discusses allocation results in different conditions.