Research on Coordination Model of Pharmaceutical Supply Chain under Carbon Emission Trading Policy

Abstract

Objective To provide effective decision making for the subsidy policies given by the government to pharmaceutical enterprises and the coordination model adopted by pharmaceutical stakeholders under the carbon emission trading policy. Methods The Stackelberg model was used to discuss the optimal profits of each member and the whole supply chain under different decision-making models while considering the technical capacity of emission reduction and cost sharing contract. Based on this, the impact of the combined contract decisionmaking model on the technical efforts of drug manufacturers to reduce carbon emission, the profits of supply chain members and the overall profits of supply chain was investigated. Results and Conclusion Research has found that improving the research and development efforts of emission reduction technologies by pharmaceutical enterprises can increase drug sales and enhance the expected profits of pharmaceutical supply chain members. The members of the secondary pharmaceutical supply chain can achieve the optimal expected profit when reaching cooperation. Besides, when the cost sharing contract and quantity discount contract meet the constraint conditions, the combined contract decision model can perfectly coordinate the pharmaceutical supply chain, enabling supply chain members to achieve Pareto improvement and gradually reach Pareto optimum.

Keywords

carbon emission trading policy / pharmaceutical supply chain / R&D of emission reduction technology / contract model

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