Incentive Strategies of Different Channels in an Electric Vehicle Battery Closed-Loop Supply Chain
Author(s) -
Hongfang Song,
Hongrui Chu
Publication year - 2019
Publication title -
procedia computer science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.334
H-Index - 76
ISSN - 1877-0509
DOI - 10.1016/j.procs.2019.12.033
Subject(s) - incentive , profit (economics) , computer science , supply chain , electric vehicle , closed loop , battery (electricity) , operations research , automotive engineering , mathematical optimization , simulation , business , microeconomics , marketing , economics , mathematics , control engineering , power (physics) , physics , quantum mechanics , engineering
This paper focuses on an electric vehicle (EV) battery closed-loop supply chain. We present two models to explore incentive (reward) strategies under different channels: the manufacturer’s reward strategy, the manufacturer’s reward strategy and the retailer’s reward strategy. Through theoretical study and numerical analysis, the results show that (1) total profit is increasing with increase of reward intensity, and using a more favorable reward is expected to obtain higher total profit in model 2; (2) higher recycling rate is associated with higher reward intensity both different channels; (3) optimal retail price increases with the increase of reward both different channels.
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