Quantity-Flexibility Contract Models for the Supply Chain with Green-Sensitive Demand in the Automotive Manufacturing Industry - Advances in Production Management Systems. Artificial Intelligence for Sustainable and Resilient Production Systems Access content directly
Conference Papers Year : 2021

Quantity-Flexibility Contract Models for the Supply Chain with Green-Sensitive Demand in the Automotive Manufacturing Industry

Zhe Yuan
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  • PersonId : 1235629
Yeming Gong
  • Function : Author
  • PersonId : 1235630
Mingyang Chen
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  • PersonId : 1235631

Abstract

This paper considers a quantity-flexibility contract with green-sensitive demand in the automotive industry. The automobile manufacturer determines the green level, and the retailer determines the retail price. The authors apply game theory to build the models, optimize the green level for maximizing the automobile manufacturer’s profit, and optimize the retail price for maximizing the retailer’s profit. We consider the equilibrium decision between the green level and the retail price to maximize the supply chain’s profit. Furthermore, we conduct experiments to verify our analysis results. Interestingly, this study finds that it is optimal for the retailer in the decentralized case to charge a higher price when the green sensitivity increases. However, the optimal price in the centralized case is not necessarily monotonic when the demand is lower. The manufacturer should set a higher green level as the greening investment parameter increases.
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hal-04022127 , version 1 (09-03-2023)

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Zhe Yuan, Yeming Gong, Mingyang Chen. Quantity-Flexibility Contract Models for the Supply Chain with Green-Sensitive Demand in the Automotive Manufacturing Industry. IFIP International Conference on Advances in Production Management Systems (APMS), Sep 2021, Nantes, France. pp.441-449, ⟨10.1007/978-3-030-85906-0_49⟩. ⟨hal-04022127⟩
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