Multi-Layer Platform Supply Chain Network Equilibrium Considering Service Level and Quality Control Under the Cap-and-Trade Regulation

Based on a platform supply chain network (PSCN), we examine optimal service level, quality and abatement decisions to be made by supply chain members under various conditions. The network consists of suppliers, two types of manufacturers, a platform, a carbon trading center, and demand markets. The suppliers and two types of manufacturers are subject to the cap-and-trade (CAT) regulation, and manufacturers are also responsible for the recycling and remanufacturing process. In addition, the government and platform will conduct quality inspections to ensure product quality. The solutions are gained using the modified projection algorithm, and some numerical examples are studied to conclude that efficient remanufacturing capability can enable the economic goals to be reconciled with the environmental needs. Moreover, consumers' dual preferences and reasonable service level promote the operation of the platform supply chain actively. Interestingly, it is not sensible for the manufacturers' leaders to insist on producing high-quality products in some scenarios. Some significant management insights for real-world business operations were derived from the analysis