Coordination of an Environmentally Responsible Supply Chain with Cost Disturbance under Carbon Price Fluctuations
Table 1
Parameter notations.
Given parameters
c
Unit cost of a product,
p
Retail price,
Manufacturer wholesale price,
m
Retailer marginal profit,
q
Production quantity,
Consumer valuation of the product,
e
Sensitivity coefficient of carbon emission reduction level (consumers’ environmental awareness),
r
Carbon emission reduction investment level, (assume that the carbon emission per unit product is 1 and consider the manufacturer as the demand side of carbon emission rights)
R
Carbon emission cap,
t
Carbon price,
o
Carbon price fluctuation
Shortage cost
Inventory cost
U
Consumer’s utility function
d
Demand function
Profit function
Superscripts/subscripts
()
Optimal result without carbon price fluctuations
()
Optimal result with carbon price fluctuations
()
The result of centralized supply chain
()
The result of retailer-leading decentralized supply chain
()
The result of manufacturer-leading decentralized supply chain
The profit of retailer in the decentralized supply chain
The profit of manufacturer in the decentralized supply chain
