Inter-basin water transfer green supply chain coordination with partial backlogging under random precipitation

Abstract

Abstract Water demand backlogging and delivery loss have important impacts on the operational decisions and efficiency of the inter-basin water transfer (IBWT) green supply chain. This paper formulates, analyzes, and compares three IBWT green supply chain coordination decision models considering water delivery loss with lost sales, fully backlogging and partial backlogging under random precipitation, conducts the corresponding numerical and sensitivity analyses, and summarizes the corresponding managerial insights and policy implications. The research results show that: first, a two-part tariff contract can effectively coordinate the IBWT green supply chain and improve operational performance; second, the fully/partial backlogging strategy can effectively improve the operational performance of the IBWT green supply chain; third, fully backlogging is the first-best strategy and partial backlogging is the second-best strategy for the IBWT green supply chain.