Coordination for closed-loop supply chain of petroleum equipment industry under demand emergencies

Abstract

Petroleum and petrochemical industry is the major part in China energy consumption, and closed-loop supply chain management is an important thought for petroleum equipment industry to make energy conservation and emission reductions come true. In view of the frequent emergencies on a global scale, in considering of stochastic demand, it is studied for three-level closed-loop supply chain of petroleum equipment industry to respond to demand emergencies with all unit quantity discount contract. The result shows that demand emergencies can cause a certain degree of effect to closed-loop supply chain of petroleum equipment industry. The original parameters can keep the supply chain coordinative when the market demand changed slightly, and the supply chain of petroleum equipment industry can be of anti-emergencies-ability by parameters being adjusted when the market demand changed much. That is, the supply chain coordination will be broken under the previous contract. However, no need to change retailers' recycling price in any case.