Research On Operating Decisions And Demand Information Sharing Strategies Of Supply Chain In The Cap-and-Trade System

In the past century,the use of fossil fuels has released large amounts of greenhouse gases such as carbon dioxide,which has led to global warming.In order to slow down the trend of global warming,carbon emissions must be reduced.Many countries implement carbon emission regulations to reduce carbon emissions,such as carbon taxes,the Cap-and-Trade system,carbon offsets and so on.The introduction of the Cap-and-Trade system allows companies to profit from carbon trading markets.At the same time,affected by the consumers'low-carbon awareness,the market demand for product is directly affected by the carbon footprint.Companies on the supply chain must reduce carbon emissions,or they may be squeezed out of the market because they can't meet consumer demand.However,reducing carbon emissions means the added cost.Therefore,companies make a reasonable carbon emission reduction decision is crucial under the Cap-and-Trade system.In the real situation,information asymmetry is very common in the supply chain.Manufacturers and retailers make different market demand forecasts due to different market information.The asymmetry of demand forecast information makes it more difficult for companies to make rational operation decisions.Therefore,when the demand information is asymmetric,it is of great significance to study the operation decisions of supply chain members under the Cap-and-Trade system.This paper adopts the Stackelberg game to study the supply chain consisting of one manufacturer and one retailer,and the manufacturer is the leader and the retailer is the follower.Based on the non-consideration and consideration of demand forecasting cost,two profit models are established,and the No information sharing case,Information sharing case and Only retailer forecasting case are established under both models.By solving and comparing the optimal decisions and profits of the manufacturer and retailer under the three information cases,we get the following main conclusions:First,without considering the cost of forecast,the paper study the optimal decisions and demand information sharing strategies of the low-carbon supply chains under three information cases.It is found that the sharing of demand information can't always increase the members profits.The prediction errors of the manufacturer and retailer,as well as the market uncertainty will affect the choice of manufacturer and retailer.For example,when the retailer's prediction level is better than the manufacturer's,if the market is highly uncertain,both of the retailer and the manufacturer choose Only retailer forecasting case,Otherwise,the manufacturer prefers Information sharing case and the retailer's information sharing strategy is no information sharing.Second,the paper study the optimal decisions and demand information sharing strategies of the low-carbon supply chains with considering the cost of forecast.The study found that when the forecast cost is added,both of the manufacturer s and the retailer's forecast accuracy should be high,regardless of whether the demand forecast information is shared or not.If one party's forecast variance is high,the other party's forecast variance must be lower than that.With the forecast cost,the retailer's best choice is No-information sharing case and the manufacturer's best choice is only retailer forecasting.The forecast cost will certainly reduce the profit of the enterprise,but the high-accuracy forecast can't always make the enterprise get a high profit.Thirdly,numerical examples are used to analyze the intluence of consumers' low carbon awareness,carbon reduction efficiency,carbon quotas and carbon trading prices on the profit of supply chain members.The study found that the consumers' low-carbon awareness has a positive effect on the members'profits.If the carbon reduction efficiency decreases,the member's profits decrease.And when the carbon reduction efficiencv is reduced to a certain extent,the benefits of improving carbon reduction efficiency to the game players are very limited.When the carbon trading price increases,the retailer's profit decreases and the manufacturer's profit increases Under the Cap-and-Trade system,the carbon quotas do not affect supply chain decisions,but can benefit the manufacturer.