Low-carbon Supply Chain Decision Considering Different Pricing Strategies

The global low-carbon economy is developing rapidly,and consumers' awareness of environmental protection is increasing.Therefore,many companies adopt carbon emission reduction measures to produce low-carbon products that meet consumer demand.Reasonable pricing of low-carbon products is still an important factor for consumers to purchase products.Especially when companies consider different consumers' low-carbon preference,how to price products has become the key to low-carbon products.Therefore,this paper takes the low-carbon supply chain as the research background,and explores the decision-making of different pricing strategies for low-carbon products with different carbon emission reduction levels for companies in different dominant supply chains.The specific contents include:(1)Considering the low-carbon preference of consumers,the decision-making of pricing strategies for two products with different levels of carbon emission reduction is studied in the manufacturer-led supply chain.A unified pricing and a differential pricing strategy model between two retailers are setup respectively.The carbon emission,price and the supply chain profits are obtained.Then,numerical simulations are used to analyze the impact of carbon emission reduction cost coefficient and potential market demand changes on supply chain system and enterprise decision-making.(2)Considering the low-carbon preference of consumers,the decision-making of pricing strategies for two products with different levels of carbon emission reduction is studied in the retailer-led supply chain.A unified pricing and a differential pricing strategy model between two manufacturers are setup respectively.The carbon emission,price and the supply chain profits are obtained.Then,numerical simulations are used to analyze the impact of carbon emission reduction cost coefficient and potential market demand changes on supply chain system and enterprise decision-making.The study found that:(1)In the manufacturer-led supply chain,The total supply chain profit,manufacturer profit,retailer profit,and the carbon emission reduction levels under the differential pricing strategy are always higher than the unified pricing strategy.It indicates that the differential pricing strategy can benefit all the channel members and the whole supply chain,and promote the carbon emission reduction level for the products.(2)In the retailer-led supply chain,the total supply chain profit,and retailer profit under the unified pricing strategy are always higher than the differential pricing strategy.It indicates that the unified pricing strategy can benefit retailer and the whole supply chain.(3)In different leading supply chains,whether cooperative pricing strategies are adopted between manufacturers or retailers,the higher carbon emission reduction cost coefficient not only hinders manufacturers from conducting low-carbon product research,but also reduces profits.(4)In the two dominant supply chains,regardless of the potential market demand is small or large,the total profit of the supply chain under the centralized decision-making situation is always higher than the decentralized decision-making situation.