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NEV’s Supply Chain Coordination with Financial Constraint and Demand Uncertainty

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  • Xin Li

    (Department of Decision Sciences, Macau University of Science and Technology, Macau, China
    These authors contributed equally to this work.)

  • Yongjian Li

    (Department of Decision Sciences, Macau University of Science and Technology, Macau, China
    These authors contributed equally to this work.)

Abstract

Sustainable development coordination can facilitate the new energy vehicles (NEV) supply chain. By a coordinating supply contract, the operating costs can be reduced and supply chain competitiveness can be improved. We designed a revenue-sharing and buy-back (RSBB) contract to coordinate the supply chain with the cash-strapped retailer or manufacturer and analyzed the impact of the acceptable bankruptcy risk and own fund on the optimal order quantity, supply chain profits, and coordinating factors, including revenue share and buy-back price. Interestingly, the revenue share decreases in the acceptable bankruptcy risk, but the buy-back price increases in the acceptable bankruptcy risk when the retailer has financial constraints. However, when the manufacturer has financial constraints, the revenue share increases in the acceptable bankruptcy risk, but the buy-back price decreases in the acceptable bankruptcy risk.

Suggested Citation

  • Xin Li & Yongjian Li, 2022. "NEV’s Supply Chain Coordination with Financial Constraint and Demand Uncertainty," Sustainability, MDPI, vol. 14(3), pages 1-16, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1114-:d:728147
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    References listed on IDEAS

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    1. Zhang, Xian & Wang, Ke & Hao, Yu & Fan, Jing-Li & Wei, Yi-Ming, 2013. "The impact of government policy on preference for NEVs: The evidence from China," Energy Policy, Elsevier, vol. 61(C), pages 382-393.
    2. Zhu, Wenge & He, Yuanjie, 2017. "Green product design in supply chains under competition," European Journal of Operational Research, Elsevier, vol. 258(1), pages 165-180.
    3. Bengang Gong & Xuan Xia & Jinshi Cheng, 2020. "Supply-Chain Pricing and Coordination for New Energy Vehicles Considering Heterogeneity in Consumers’ Low Carbon Preference," Sustainability, MDPI, vol. 12(4), pages 1-14, February.
    4. Hertzel, Michael G. & Li, Zhi & Officer, Micah S. & Rodgers, Kimberly J., 2008. "Inter-firm linkages and the wealth effects of financial distress along the supply chain," Journal of Financial Economics, Elsevier, vol. 87(2), pages 374-387, February.
    5. Srinivasa Raghavan, N.R. & Mishra, Vinit Kumar, 2011. "Short-term financing in a cash-constrained supply chain," International Journal of Production Economics, Elsevier, vol. 134(2), pages 407-412, December.
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    Cited by:

    1. Shi, Yangyan & Feng, Yu & Zhang, Qi & Shuai, Jing & Niu, Jiangxin, 2023. "Does China's new energy vehicles supply chain stock market have risk spillovers? Evidence from raw material price effect on lithium batteries," Energy, Elsevier, vol. 262(PA).
    2. Chaonan Li & Tianyi Guo & Yan Chen, 2022. "Robust Emission Reduction Strategies under Cap-and-Trade and Demand Uncertainty," Sustainability, MDPI, vol. 14(20), pages 1-27, October.

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