Abstract: For the threelevel productioninventory control with carbon constraint， the production capacity and ordering in the threelevel system with multisuppliers， single manufacturers and multiretailers was explored by using the improved EOQ. The decentralized and centralized decisionmaking model of the threelevel productioninventory system with carbon constraint， and the model of profit compensation contract with manufacturers were established. The decisionmaking model was solved by using heuristic algorithm. The computational experiments and analyses show that the system indexes are better when manufacturers centralize their decisionmaking， the impact of carbon price change on the system is more significant， and the carbon trading mechanism is more effective for carbon emission reduction， thus verifying the validity of the model.

Key words: carbon constraint, decentralized and centralized decisionmaking model, productioninventory control strategy, uncertain demand