Product Pricing in a Two-echelon Supply Chain with Stochastic Demand Under Carbon Cap \& Trade Regulations

Rajib Chakrabarty1, Vaskar Sarkar2 and Narayan Chandra Majee1

1Department of Mathematics, Jadavpur University, Kolkata, India.
2Department of Mathematics, School of Science, Adamas University, Barrackpore Barasat Road, Kolkata, India.

Abstract: In this paper we have considered a two echelon supply chain (SC) under aspect of carbon cap and trade, where the two players of the SC are manufacturer, distributors. We have considered price and carbon emission dependent stochastic demand for single manufacturer and many distributors. First we formulates integrated SC model that allows Stackelberg game policy for optimizing profits of manufacturer and distributors for two scenarios centralized and decentralized. The decentralized scenario is subdivided depending upon the power of the manufacturer and distributors. We find the optimal values of distributor's base selling price, carbon foot print (emission) after carbon emission mitigation and manufacturer’s wholesale price for unit product. Here we have used Mathematica 7.0 for solution of numerical example.
Keywords: Supply chain, Stackelberg game policy, Carbon foot print, Carbon cap-and-trade mechanism, Carbon emission mitigation.

Cite this article as: R. Chakrabarty, V. Sarkar and N. C. Majee, Product Pricing in a Two-echelon Supply Chain with Stochastic Demand Under Carbon Cap & Trade Regulations, Int. J. Math. And Appl., vol. 10, no. 1, 2022, pp. 67-77.

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