A design of straw acquisition mode for China's straw power plant based on supply chain coordination

China's straw power industry has developed rapidly in recent years. However, SPPs (straw power plants) were always under financial deficit, which mainly arose from high operating costs and undersupply of feedstock. In order to break through feedstock dilemma, we apply game theory to model China's straw supply chain and design an applicable straw acquisition mode for China's SPPs by coordination. It is found that a SPP's payoff varies under different straw acquisition modes. The more straws a SPP acquires directly from farmers, the higher profit it achieves. In a coordinating way, a Mixed Acquisition Mode is designed, which can be conducted in practice and ensure SPP's straw supply with lower cost. The model has been applied to the case of Rudong SPP in China, which shows that the Mixed Acquisition Mode designed in this paper can help the SPP run in a better condition. (C) 2014 Elsevier Ltd. All rights reserved.