Supply chain strategy considering carbon emission and unbalanced competition

Companies are often faced with the dual pressure of capital constraints and carbon reduction. Starting from the horizontal unbalanced competition of suppliers, and considering the double sensitive demand characteristics of price and carbon emission reduction, a Stackelberg game model dominated by the retailer was established. The chain reaction brought by the transmission of enterprise heterogeneity characteristics was given by equilibrium decisions under different competitive conditions. The effect mechanisms of production cost, carbon emission reduction efficiency and capital level on the decision of supply chain members were described, and the retailer's pricing strategy and cooperative supplier selection strategy were verified. The results show that the lower production cost can encourage the supplier to increase emission reduction effort and achieve profit growth. The optimization of carbon reduction efficiency can help the supplier expand the market through high carbon reduction investment to obtain a competitive advantage, while the impact of the capital environment depends on the degree of original funding constraints. From the perspective of the retailer, he/she should cooperate with two competing suppliers with similar levels, and formulate a differentiated pricing strategy. © 2021, Editorial Department of Journal of Southeast University. All right reserved.