Operation strategy for new energy vehicle enterprises based on dual credit policy

Junchong Pu; Weide Chun; Zhengkai Wang; Wei Chen

doi:10.3934/jimo.2022192

Article Contents

2023, Volume 19, Issue 8: 5724-5748. Doi: 10.3934/jimo.2022192

This issue Previous Article The effect of repeating transactions on service supply chain performance under proprietary and agent modes Next Article Pricing vulnerable fader options under stochastic volatility models

Operation strategy for new energy vehicle enterprises based on dual credit policy

1.
College of Management Science, Chengdu University of Technology, Chengdu 610059, China
2.
School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China

^*Corresponding author: Wei Chen
^*Corresponding author: Wei Chen

Received: May 2022

Revised: August 2022

Early access: September 2022

Published: August 2023

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Abstract

This article constructs a two-stage supply chain consisting of a manufacturer (producing both fuel vehicles (FV) and new energy vehicles) and a retailer (selling both fuel vehicles and new energy vehicles) based on dual credit policy, considers three different power structure models, including the vertical Nash game model, the manufacturer Stackelberg game model, the retailer Stackelberg game model, and explores the operational strategy issues of new energy vehicle (NEV) enterprises under the dual credit policy. By comparing the optimal equilibrium solutions under different channel power structures, our findings indicate that (1) When the demand function is linear, the vertical Nash game model can achieve the highest system profit of the automotive supply chain, and in the manufacturer Stackelberg game model, the profit of the automaker is higher than that of the retailer, while in the retailer Stackelberg game model, the profit of the automaker is lower than that of the retailer. (2) The demand and pricing for FV and NEV in different models are determined by the range of FV and NEV production costs, credit trading prices, and the proportion of NEV credits. (3) Both the increase in the credit trading prices and the proportion of NEV credits will promote increased profits for the manufacturer and retailer. (4) The increase of the price sensitivity coefficient will reduce the demand as well as the profit of auto supply chain members.

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Mathematics Subject Classification: Primary: 90B50, 91A80; Secondary: 91A65.

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Figure 1. Impact of $ b_f, b_n $ on manufacturer profit

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Figure 2. Impact of $ b_f, b_n $ on retailer profit

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Figure 3. Impact of $ b_f $ on manufacturer profit

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Figure 4. Impact of $ b_f $ on retailer profit

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Figure 5. Impact of $ t $ on manufacturer profit

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Figure 6. Impact of $ t $ on retailer profit

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Figure 7. Impact of $ \lambda $ on manufacturer profit

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Figure 8. Impact of $ \lambda $ on retailer profit

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