4.3 Article

COORDINATION STRATEGY FOR A DUAL-CHANNEL ELECTRICITY SUPPLY CHAIN WITH SUSTAINABILITY

Journal

JOURNAL OF INDUSTRIAL AND MANAGEMENT OPTIMIZATION
Volume 18, Issue 6, Pages 3879-3895

Publisher

AMER INST MATHEMATICAL SCIENCES-AIMS
DOI: 10.3934/jimo.2021139

Keywords

Electricity sustainability; green production; dual-channel electricity supply chain; coordination

Funding

  1. National Natural Science Foundation of China [72002020, 72002094, 71972026]
  2. Research Project of Chongqing Technology and Business University [1956053]

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The study found that sensitivity to electricity sustainability contributes to increased sustainability, price, demand, and profits for enterprises in the electricity supply chain. A centralized model encourages investment in more sustainable energy production. Moreover, coordination in the electricity supply chain system can be achieved by combining revenue-sharing and cost-sharing in a fixed compensation contract.
This paper describes the construction of a dual-channel electricity supply chain, with an electricity generation enterprise as the leader and an electricity retail enterprise as the follower, examining sustainability and price decision-making, and formulates a coordination contract to improve electricity supply chain performance. The main results are as follows. Firstly, sensitivity to electricity sustainability contributes to increased electricity sustainability, electricity price, electricity demand, and supply chain enterprises' profits. Secondly, a centralized model is conducive to investment in more sustainable energy production. Finally, electricity supply chain system coordination can be realized by combining revenue-sharing and cost-sharing in a fixed compensation contract.

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