Abstract:With a two-echelon manufacturer chain consisting of one supplier constrained by cap-and-trade policy and one retailer facing homogeneous strategic customers taken into consideration, the supply chain decision-making and coordination are studied. The optimal decisions and maximum expected profit of centralized supply chain including two scenarios of rational expectation equilibrium and quantity commitment and decentralized supply chain are derived. Compared with the scenario of no cap-and-trade policy, the results indicate that the cap-and-trade policy makes the supply chain’s optimal production quantity reduce, the optimal price increase and the carbon emission quantity reduce. Finally, taking the quantity commitment scenario as the benchmark, the supply chain coordination strategy is designed based on the revenue sharing contract.