Abstract
In the market, once consumers have a low-carbon preference, they will choose green low-carbon products. The market demand for green products is not only related to product price, but also consumers’ low-carbon preference. In this way, enterprise has to consider the cost of carbon emissions in the process of production and operation. In this paper, we consider a two-level supply chain system composed of a manufacturer and a retailer. The supply chain system can determine the price of products and the level of carbon emission reduction through different supply chain contracts: wholesale price contract and revenue sharing contract. However, the power control structure of a manufacturer and a retailer is different, which will further affect the decision-making strategy of the supply chain system. We set up four models (Wholesale Price—NM and NR, and Revenue-Sharing—SR and SM) of the supply chain with carbon emission reduction, and calculated and analyzed. The results show that firstly, regardless of whether the manufacturer’s power control structure or the retailer power structure is dominant, the manufacturer wholesale price with a contract on revenue-sharing is always higher than on wholesale price, and it is inversely proportional to the revenue-sharing proportion. Secondly, under the two power control structures, the carbon emission level of the manufacturer with a contract on revenue-sharing is always lower than on wholesale price, and it gradually decreases with the increase of the revenue-sharing proportion of the manufacturers. Thirdly, when the retailer dominates the supply chain, the retailer selling price with a contract on revenue-sharing is always higher than on wholesale price. Under the manufacturer’s power control structure, when the revenue-sharing ratio is small, the retailer selling price with a contract on revenue-sharing is higher than on wholesale price; when the revenue-sharing ratio is large, the retailer selling price with a contract on revenue-sharing is lower than on wholesale price. Finally, the validity of the model is verified by an example, and the sensitivity of the parameters is analyzed.
Highlights
In recent years, the carbon emissions produced by human beings in production and life have caused an imbalance in the earth’s ecology and caused global warming and other climate-related problems
Under different power control structures, is the incentive effect of choosing different contracts the same? What kind of impact will different revenue-sharing ratios have on pricing, carbon emission reduction and the revenue of green supply chain members under different power control structures? These questions will be the focus of our study
Under the revenue sharing contract, we find that the carbon emission level is increased, which has nothing to do with the power structure
Summary
The carbon emissions produced by human beings in production and life have caused an imbalance in the earth’s ecology and caused global warming and other climate-related problems. In the field of the green supply chain, with which this study is concerned, Wang and Zhao designed a contract on revenue-sharing between a manufacturing company and retailer and realized a Pareto improvement based on consumers’ preference for low-carbon products and enterprises’ active implementation of measures to reduce emissions [22]. Under different power control structure, the paper studies how different supply chain contracts (wholesale price contract and revenue sharing contract) make green supply chain operation decisions, such as carbon emissions, wholesale prices, member performance, and so on. Considering consumers’ preference for low-carbon products, this paper considers decision-making issues related to supply chain pricing and carbon emission reduction in various supply chain contracts. We provide the conclusion of the study and our contribution, and find the shortcomings of this paper and research directions in the future
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