Three-stage mining metals supply chain coordination and air pollutant emission reduction with revenue sharing contract

One of the main concerns of all industries such as mine industries is to increase their profit and keep their customers through improving quality level of their products; but increasing the quality of products usually releases air pollutants. Nowadays the management of air pollutant emissions with harmful environmental and health effects is one of the most pressing problems. In this paper, authors study the decision behaviour and coordination issue of a mining metal three-level supply chain with one supplier (extractor), one mineral processor and one manufacturer. We compare the decentralized and the centralized systems and reduce air pollutant emission by designing a revenue sharing contract for the mentioned decentralized supply chain under cap-and-trade regulation. Finally, a numerical example shows that the designed contract not only provides win-win condition for all supply chain members and increases whole supply chain profit but also reduces harmful air pollutant emissions in the supply chain.