›› 2018, Vol. 30 ›› Issue (9): 218-228.

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Study on Low-carbon Supply Chain Coordination Strategy with Sales-rebate Contract

Li Youdong1, Xia Liangjie2, Wang Fengzheng3   

  1. 1. School of Business Administration, Inner Mongolia University of Finance and Economics, Hohhot 010070;
    2. School of Business, Tianjin University of Finance and Economics, Tianjin 300222;
    3. School of Economics and Management, Inner Mongolia University, Hohhot 010021
  • Received:2016-06-23 Online:2018-09-28 Published:2018-09-29

Abstract:

Aiming at the cooperation strategy problem of enterprises' carbon emission reduction in low-carbon supply chain, we construct three different kinds of sales-rebate contract models namely sales-rebate and revenue sharing contract, downward sales-rebate contract, sales-rebate and reduction-emission cost sharing contract. This paper studies how the three types of sales-rebate contracts influence the performance of low-carbon supply chain under the circumstance of carbon tax and low carbon preference. Assuming the manufacturer is the core enterprise with linear demand, the paper analyzes effectiveness and flexibility of proposed contracts by game theory model. It is shown that under certain conditions both manufacturer and retailer can gain more profit by means of appropriate coordination contracts. At the same time, the performance of the supply chain is also improved. The range of bargaining strategies of the two parties under different contracts is determined and several important implications are derived analytically to point out relationship among characteristically differ-ent contracts. Results are illustrated with numerical examples.

Key words: low-carbon supply chain, sales-rebate contract, carbon tax, supply chain coordination, game theory