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| Dynamic Optimization and Coordination in a Supply Chain of Low-Carbon Goodwill with Advertising and Low-Carbon Competition |
| YE Tong，GUAN Zhimin，ZHAO Ying，CHEN Dayu |
| Northeast University, Shenyang, China |
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Abstract In this paper, a dynamic optimization and coordination problem under dual competition with advertisement and low-carbon considering the dynamic features of low-carbon level and low-carbon goodwill is explored utilizing the differential game theory and method. The supply chain members’ game equilibrium of decentralized and centralized decision- making mode are investigated respectively. Then a compound contract based on profit allocation, revenue and cost sharing is designed. The research shows that the compound contract can achieve the perfect coordination of supply chain under certain conditions. In decentralized decision- making mode, the manufacturer with lower unit production cost can expand the advertisement and carbon emission reduction investment with fiercer competition in advertisement and low-carbon. But the manufacturers can’t expand the investment blindly in centralized decision-making mode. The low-carbon level and low-carbon goodwill of centralized decision are not always higher than that of decentralized decision.
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Received: 15 December 2017
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