Automobile supply chain coordination considering auto price, emission reduction and the mileage range in one charge under the “double points” policy

LU Chao, WANG Qianqian, CHEN Qiang

Systems Engineering - Theory & Practice ›› 2021, Vol. 41 ›› Issue (10) : 2595-2608.

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Systems Engineering - Theory & Practice ›› 2021, Vol. 41 ›› Issue (10) : 2595-2608. DOI: 10.12011/SETP2020-1957

Automobile supply chain coordination considering auto price, emission reduction and the mileage range in one charge under the “double points” policy

  • LU Chao1, WANG Qianqian1, CHEN Qiang2
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Abstract

The "double points" policy requires a higher automotive quality, energy conservation and emission reduction from the supply side. This paper, by considering the vehicle price, carbon remission reduction (consumers' low-carbon preference), and consumers' concerns about the mileage range in one charge from the demand side, studied the supply chain decision and coordination issue of a two-tier supply chain consisted by two carmakers and a dealer. The optimization decision and corresponding parameters of automobile supply chain was firstly analyzed, and then the coordination effects of three different supply chain contracts were explored, which was followed by a numerical analysis to verify the theoretical conclusions. The research findings are as follows:1) The improvement of consumers' low-carbon preference and consumers' concern about the mileage range in one charge can promote automobile manufacturers to further reduce their carbon emissions and improve the mileage range in one charge. 2) The increase of new energy vehicles' points ratio can restrain the production of fuel vehicles, but cannot promote the improvement of emission reduction efforts. There is a positive correlation between new energy vehicles' score accounting coefficient and the promotion effects to new energy vehicle industry. 3) Neither cost sharing nor revenue sharing contracts can completely eliminate the "double" marginal effect (which can only achieve Pareto improvement), while the two-part tariff contract can fully coordinate automobile supply chain.

Key words

supply chain coordination / efforts to reduce emissions / efforts to improve the mileage range in one charge / "double points" policy

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LU Chao , WANG Qianqian , CHEN Qiang. Automobile supply chain coordination considering auto price, emission reduction and the mileage range in one charge under the “double points” policy. Systems Engineering - Theory & Practice, 2021, 41(10): 2595-2608 https://doi.org/10.12011/SETP2020-1957

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Funding

National Natural Science Foundation of China (71704101); Humanities and Social Sciences Foundation of Ministry of Education of China (17YJC630094); Major Program of National Social Science Foundation of China (21ZDA018)
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