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| Indices | |
| Index of OEM, i = 1, 2, …, I |
| Index of product, j = 1, 2,…, J |
| Index of period, t = 1, 2, …, T |
| Index of discount interval, r = 1, 2, …, R |
| Parameters | |
| Original price of product j supplied by OEM i in period t |
| Price discount rate of discount interval r when product j is supplied by OEM i in period t |
| Upper limit quantity of discount interval r when product j is supplied by OEM i in period t |
| Lower limit quantity of discount interval r when product j is supplied by OEM i in period t |
| Number of discount intervals of product j for OEM i |
| Unit carbon emission of product j manufactured by OEM i |
| Defective rate when OEM i produces product j |
| Late delivery rate of product j supplied by OEM i |
| Maximum acceptable defective rate of product j within the planning horizon |
| Maximum acceptable late delivery rate of product j within the planning horizon |
| Demand for product j in period t |
| Capacity of OEM i to manufacture product j in period t |
| Transaction cost of purchasing product j from OEM i |
| Decision variables | |
| Order quantity in the discount interval r when product j is supplied by OEM i in period t |
| 0-1 variable, , if product j is supplied by OEM i in period t within the discount interval r; otherwise, |
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