Abstract: With the development of electronic commerce and carbon emission constraints, a two-echelon dual-channel supply chain network composed of manufacturers, retailers, and markets is formed. With the physical (P) and Internet (I) transaction channels considered, there are five combined transaction ways. They are represented by P-P, P-I, I-P, I-I, and I. Also five criteria of supply chain performance evaluation are proposed. They are cost, carbon emission, late delivery percentage, rejection percentage, and demand. The criteria with higher priorities have higher levels of satisfaction. Based on fuzzy demands of the markets, a multi-objective network optimization model is proposed. The objectives include minimization of total cost of the supply chain, total carbon emission, and the number of late delivered items and rejected items. The optimal solutions are found by using the α-cut values to balance the tradeoffs between the anticipation levels of goal values and the priorities of the five criteria. Impacts of carbon emission and the pattern of electronic commerce on the optimal transaction ways and quota allocations in the supply chain are analyzed. A numerical example is given to verify the application of the model.

Key words: carbon emission, dual-channel, performance evaluation, fuzzy demand