Pricing, Carbon Emission Reduction, Low-Carbon Promotion and Returning Decision in a Closed-Loop Supply Chain under Vertical and Horizontal Cooperation

• Published in: International Journal of Environmental Research and Public Health Vol. 14; no. 11; p. 1332
• Main Authors: Li, Hui, Wang, Chuanxu, Shang, Meng, Ou, Wei
• Format: Journal Article
• Language: English
• Published: Switzerland MDPI AG 01.11.2017; MDPI
• Subjects: Air Pollution; Carbon; carbon emissions reduction; low-carbon promotion; cooperation; closed-loop supply chain; Competition; Costs and Cost Analysis; Decision making; Emissions; Greenhouse Gases; Manufacturing; Manufacturing Industry; Models, Economic; Supply chains; low-carbon promotion; carbon emissions reduction; closed-loop supply chain; cooperation
• ISSN: 1660-4601; 1661-7827; 1660-4601
• DOI: 10.3390/ijerph14111332

In this paper, we examine the influences of vertical and horizontal cooperation models on the optimal decisions and performance of a low-carbon closed-loop supply chain (CLSC) with a manufacturer and two retailers, and study optimal operation in the competitive pricing, competitive the low-carbon promotion, the carbon emission reduction, the used-products collection and the profits. We consider the completely decentralized model, M-R vertical cooperation model, R-R horizontal cooperation model, M-R-R vertical and horizontal cooperation model and completely centralized model, and also identify the optimal decision results and profits. It can be observed from a systematic comparison and numerical analysis that the completely centralized model is best in all optimal decision results among all models. In semi-cooperation, the M-R vertical cooperation model is positive, the R-R horizontal cooperation model is passive, and the positivity of the M-R-R vertical and horizontal cooperation model decreases with competitive intensity increasing in the used-products returning, carbon emissions reduction level, low-carbon promotion effort and the profits of the manufacturer and the entire supply chain.