Optimal Decision-Making of Vertical Relationship Governance in China’s Coal-electricity Energy Supply Chain

Abstract

Coal and coal-fired electricity generation, as interdependent upstream and downstream industries, play a positive role in ensuring energy security, economic development and social stability in China. However, the strategies of coal enterprises and coal-fired power enterprises are influenced by the market structure, coal-electrical energy policies and the characteristics in the coal-electricity energy supply chain. In this paper, considering the upstream for many coal enterprises, the downstream for many coal-fired electricity generation enterprises in coal-electricity energy supply chain model, is concluded that profit calculation model for coal-electricity cooperative enterprises, independent upstream coal enterprises, and independent downstream coal-fired electricity generation enterprises were obtained. In order to maximize the profits, we construct coal enterprises and coal-fired electricity generation enterprises cooperative operation decision-making model, and the different situation of the optimal strategy is studied and analyzed. Using Matlab simulation software for numerical simulation. It is to belong to the simulation results confirm the efficiency of the model.