Coordination strategy for a dual-channel electricity supply chain with sustainability

Wei Chen; Fuying Jing; Li Zhong

doi:10.3934/jimo.2021139

Article Contents

2022, Volume 18, Issue 6: 3879-3895. Doi: 10.3934/jimo.2021139

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Coordination strategy for a dual-channel electricity supply chain with sustainability

a.
College of Management Science, Chengdu University of Technology, Chengdu 610059, China
b.
School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China
c.
National Research Base of Intelligent Manufacturing Service, Chongqing, Technology and Business University, Chongqing 400067, China
d.
College of Economics and Management, China Three Gorges University, Yichang 443002, China

^* Corresponding author: Fuying Jing
^* Corresponding author: Fuying Jing

Received: March 2021

Revised: April 2021

Early access: August 2021

Published: September 2022

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Abstract

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.

Keywords:

Mathematics Subject Classification: Primary: 91A12, 90B06; Secondary: 90B50.

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Figure 1. Profit $ \pi $ as $ b $

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Figure 2. Profit $ \pi $ as $ c $

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Figure 3. Profit $ \pi $ as $ g $

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Figure 4. Profit $ \pi $ as $ f $

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Table 1.

Notation	Definition
$ q_m $	Electricity demand of electricity generation enterprise
$ q_r $	Electricity demand of electricity retail enterprise
$ a $	Potential market demand
$ b $	Price competition between the two channels
$ f $	Sensitivity to electricity sustainability
$ c $	Electricity production cost coefficient
$ g $	Cost coefficient of electricity sustainability
$ \pi_m $	Profit of the electricity generation enterprise
$ \pi_r $	Profit of the electricity retail enterprise
Decision Variables
$ p_m $	Electricity price of electricity generation enterprise
$ p_r $	Electricity price of electricity retail enterprise
$ w_r $	Electricity wholesale price for electricity retail enterprise
$ e $	Degree of sustainability of electricity

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