Study on Two-level Supply Chain Inventory Management Collaboration Strategies under Carbon Emission Caps

Abstract

This paper bulids the carbon-emission-based Economic Order Quantity (EOQ) model in the two level supply chain with a supplier and a retailer, and studies the effects of interests of enterprises and supply chain system caused by three different collaboration ways of supply chain considering the carbon emission caps. These three collaboration ways are listed as follow: â‘ the retailer or supplier is dominant and another is compliant; â‘¡the retailer and supplier have equal status and collaborate with independent carbon emission caps; â‘¢the retailer and supplier have equal status and collaborate with shared carbon emission caps.