Research On Production Decision And Coordination Of Closed-loop Supply Chain Under Carbon Cap-and-trade Policy

With the implementation of the carbon cap-and-trade policy,enterprises face new challenges in the production decisions.On the one hand,the carbon policies affect the enterprise's management decisions such as carbon emission reduction technology investment.On the other hand,carbon-sensitive consumers make the company's production decisions more complicated.At the same time,with the intensification of the competition,the competition among different enterprises has been transformed into the competition among supply chain networks.Compared with the simple positive supply chains,closed-loop supply chains are more conducive to the resource-conserving society.Therefore,from the perspective of closed-loop supply chain system,this paper studies the production decision-making and coordination of closed-loop supply chain enterprises under the carbon cap-and-trade policy.In this paper,we take a two-echelon closed-loop supply chain consisting of one manufacturer and one retailer into consideration.A research under different situations(unconstrained condition,considering the carbon emission reduction technology and considering subsidies for carbon emission reduction of the manufacturer and retailer respectively)is made.The results indicated that: the optimal production decision only exists,and the improved revenue sharing-cost-sharing contract contracts can realize the coordination of the system under different situations.The sensitivity analysis show that: the unit new products of carbon emissions have a U-type relationship with unit carbon trading prices,the quantity is increasing with the unit carbon trading price,while the retailer's recovery price is an increasing function of the unit carbon trading price;when the carbon emissions are exceed the government's carbon cap,the system profits become an U-shaped relationship with the carbon trading price.When the carbon emissions are below the government's carbon cap,the system profit is an increasing function of the carbon trading price.In the unconstrained condition,the output and system profit are respectively increasing functions of the initial market share,and the retailer's recovery price is irrelevant.In other cases,the output and unit new product carbon emissions are the increase of the initial market share respectively,but the retailer's recycling price is a decreasing function of it,and the system profit has an U-shaped relationship with itExcluding the unconstrained condition,the unit carbon emissions of new products and the retailer's recycling prices are respectively increasing functions of the carbon emission reduction technology investment parameters,while the output and the system profits are decreasing functions.By comparing the optimal decision variables under different situations,it is found that when the conditions are all met in the unconstrained condition,the carbon emission reduction technology and the subsidies,the production quantity,the total carbon emission reductions and the optimal profits gradually increases,while the unit new production of carbon emissions,the recovery price of the retailer and the recovery rate gradually decrease.What's more,the size of the optimal decisions in the two kinds of carbon emission reduction subsidies depends on the size of other parameters.