Dual-source Procurement Model Analysis Based On The Emission Reduction Policy

:In recent years, a phenomenal increase of energy consumption, the deteriorating ecological environment and especially the sharp increase in carbon dioxide emissionslead to increasingly serious global climate change, globalization of the "low-carbon revolution" is on the rise. The development of low-carbon economy and thetransformation of economic growth mode have been elevated to the level of national strategic development. From the perspective of the supply chain, reduction the carbon footprint of production will be the next business trends.Firstly, the paper introduces the definitions and implementation methods of emission tax, emission trade and government subsidy and analyzes three emission reduction policies’effectiveness and compares the scope, operating costs and the acceptability and other aspects. And then, my paper expands basic dual source newsboy model by considering the environmental impact, which iscaused by enterprises in the procurement process of transport. In the paper, I make a dual sourcing model, which means that a company, e.g. a retailer, uses an offshore and an onshore supplier and I consider the three emission reduction policies in it. I solved the sourcing model including the emission reduction policies, and I obtained the optimal decision of the enterprise’purchasing activity. Based on the results, Ianalyze environmental and economic benefits of each emission reduction policies in the corporate procurement process.Finally, a simulation study was made in the paper and based on the results of the simulation study. I found the effect of the emission tax, emission trade and the government subsidies to the enterprise’s economic and environmental benefits. And I gave the reason proposal to the policy makers.