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

  • * Corresponding author: Fuying Jing

    * Corresponding author: Fuying Jing 
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  • 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.

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


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

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

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

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

    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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