IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-03169-0.html
   My bibliography  Save this article

Pricing, assembly rate optimizations and coordination for prefabricated construction supply chain with government subsidies

Author

Listed:
  • Wen Jiang

    (Sichuan Agricultural University)

  • Linqing Pu

    (Sichuan Agricultural University)

  • Manqi Qiu

    (Sichuan Agricultural University)

  • Lin Zhang

    (Sichuan Agricultural University)

Abstract

Prefabricated construction, a sustainable construction method, has become the inevitable trend for the future development of the construction industry. The subsidy policies for prefabricated construction enterprises can influence their strategies to promote the development of prefabricated construction. The paper considers a two-echelon prefabricated construction supply chain consisting of a manufacturer and an assembler, aiming to investigate pricing and the assembly rate strategies and coordination under different subsidy objects. The findings demonstrate that subsidy policies can increase the assembly rate. When the government subsidizes the manufacturer, the wholesale price decreases with the subsidy rate, while subsidizing the assembler, the wholesale price does not change. The impacts of subsidy policies on the retail price depend on price sensitivity and the consumer preference for the prefabricated construction market. When the subsidy rates are equivalent, the profit of supply chain with subsidizing the assembler is greater than that with subsidizing the manufacturer. Finally, the paper proposes the revenue-cost sharing contract to coordinate prefabricated construction supply chain with government subsidies. A numerical study is carried out to verify conclusions, and illustrates that a certain range of subsidy affects positively prefabricated construction enterprises by adjusting the retail price and increasing the assembly rate.

Suggested Citation

  • Wen Jiang & Linqing Pu & Manqi Qiu & Lin Zhang, 2024. "Pricing, assembly rate optimizations and coordination for prefabricated construction supply chain with government subsidies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03169-0
    DOI: 10.1057/s41599-024-03169-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-03169-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-03169-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. S Swami & J Shah, 2013. "Channel coordination in green supply chain management," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 64(3), pages 336-351, March.
    2. Zhai, Yue & Choi, Tsan-Ming & Shao, Saijun & Xu, Su Xiu & Huang, George Q., 2020. "Spatial-temporal hedging coordination in prefabricated housing production," International Journal of Production Economics, Elsevier, vol. 229(C).
    3. Li, Xiuhui & Wang, Qinan, 2007. "Coordination mechanisms of supply chain systems," European Journal of Operational Research, Elsevier, vol. 179(1), pages 1-16, May.
    4. Wen Jiang & Meng Yuan, 2022. "Coordination of Prefabricated Construction Supply Chain under Cap-and-Trade Policy Considering Consumer Environmental Awareness," Sustainability, MDPI, vol. 14(9), pages 1-22, May.
    5. Qiang Han & Yuyan Wang & Liang Shen & Wenquan Dong, 2020. "Decision and Coordination of Low-Carbon E-Commerce Supply Chain with Government Carbon Subsidies and Fairness Concerns," Complexity, Hindawi, vol. 2020, pages 1-19, August.
    6. He, Peng & He, Yong & Xu, Henry, 2019. "Channel structure and pricing in a dual-channel closed-loop supply chain with government subsidy," International Journal of Production Economics, Elsevier, vol. 213(C), pages 108-123.
    7. Zhai, Yue & Zhong, Ray Y. & Huang, George Q., 2018. "Buffer space hedging and coordination in prefabricated construction supply chain management," International Journal of Production Economics, Elsevier, vol. 200(C), pages 192-206.
    8. Kaiying Cao & Ping He & Zhixin Liu, 2020. "Production and pricing decisions in a dual-channel supply chain under remanufacturing subsidy policy and carbon tax policy," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 71(8), pages 1199-1215, August.
    9. Wen Jiang & Menglin Liu & Lu Gan & Chong Wang, 2021. "Optimal Pricing, Ordering, and Coordination for Prefabricated Building Supply Chain with Power Structure and Flexible Cap-and-Trade," Mathematics, MDPI, vol. 9(19), pages 1-22, September.
    10. Arshinder & Kanda, Arun & Deshmukh, S.G., 2008. "Supply chain coordination: Perspectives, empirical studies and research directions," International Journal of Production Economics, Elsevier, vol. 115(2), pages 316-335, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hao Zou & Jin Qin & Xiaofeng Long, 2022. "Coordination Decisions for a Low-Carbon Supply Chain Considering Risk Aversion under Carbon Quota Policy," IJERPH, MDPI, vol. 19(5), pages 1-24, February.
    2. Ramanathan, Usha & Muyldermans, Luc, 2010. "Identifying demand factors for promotional planning and forecasting: A case of a soft drink company in the UK," International Journal of Production Economics, Elsevier, vol. 128(2), pages 538-545, December.
    3. Michael Krapp & Johannes B. Kraus, 2019. "Coordination contracts for reverse supply chains: a state-of-the-art review," Journal of Business Economics, Springer, vol. 89(7), pages 747-792, September.
    4. Faranak Emtehani & Nasim Nahavandi & Farimah Mokhatab Rafiei, 2023. "Trade credit financing for supply chain coordination under financial challenges: a multi-leader–follower game approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-39, December.
    5. A. K. Gaula & J. K. Jha, 2024. "Pricing strategy with quality improvement in a dual collection channel closed-loop supply chain under return uncertainty," Operational Research, Springer, vol. 24(2), pages 1-40, June.
    6. Faranak Emtehani & Nasim Nahavandi & Farimah Mokhatab Rafiei, 2021. "A joint inventory–finance model for coordinating a capital-constrained supply chain with financing limitations," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-39, December.
    7. Xiao Zhou & Xiancong Wu, 2023. "Decisions for a Retailer-Led Low-Carbon Supply Chain Considering Altruistic Preference under Carbon Quota Policy," Mathematics, MDPI, vol. 11(4), pages 1-23, February.
    8. Yan Ma & Susu Cheng, 2023. "Channel coordination in a closed‐loop supply chain with fairness concerns under further extended producer responsibility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 876-891, March.
    9. Peng He & Tong-Yuan Wang & Qi Shang & Jun Zhang & Henry Xu, 2024. "Knowledge mapping of e-commerce supply chain management: a bibliometric analysis," Electronic Commerce Research, Springer, vol. 24(3), pages 1889-1925, September.
    10. Wen Jiang & Menglin Liu & Lu Gan & Chong Wang, 2021. "Optimal Pricing, Ordering, and Coordination for Prefabricated Building Supply Chain with Power Structure and Flexible Cap-and-Trade," Mathematics, MDPI, vol. 9(19), pages 1-22, September.
    11. Fangfang Zhang & Hao Wang & Xiaoyu Wu, 2021. "The Impact of Government Subsidies on Single-Channel Recycling Based on Recycling Propaganda," Energies, MDPI, vol. 14(23), pages 1-14, December.
    12. Wen Cheng & Qunqi Wu & Fei Ye & Qian Li, 2022. "The Impact of Government Interventions and Consumer Green Preferences on the Competition between Green and Nongreen Supply Chains," Sustainability, MDPI, vol. 14(10), pages 1-34, May.
    13. Marjia Haque & Sanjoy Kumar Paul & Ruhul Sarker & Daryl Essam, 2022. "A combined approach for modeling multi-echelon multi-period decentralized supply chain," Annals of Operations Research, Springer, vol. 315(2), pages 1665-1702, August.
    14. Abhishek Srivastava & Abhishek Chakraborty & Arqum Mateen, 2022. "Role of power imbalance on channel coordination under greening investments," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1522-1554, December.
    15. Hua, Longxue & Wu, Yingliang, 2024. "Strategic analysis of vertical integration in cross-border e-commerce logistics service supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).
    16. Tahirov, Nail & Glock, Christoph H., 2022. "Manufacturer encroachment and channel conflicts: A systematic review of the literature," European Journal of Operational Research, Elsevier, vol. 302(2), pages 403-426.
    17. G. Rius-Sorolla & J. Maheut & S. Estellés-Miguel & J. P. Garcia-Sabater, 2020. "Coordination mechanisms with mathematical programming models for decentralized decision-making: a literature review," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(1), pages 61-104, March.
    18. Peng Xing & Xiangru Zhao & Mingxing Wang, 2022. "The Optimal Combination between Recycling Channel and Logistics Service Outsourcing in a Closed-Loop Supply Chain Considering Consumers’ Environmental Awareness," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    19. Raza, Syed Asif, 2018. "Supply chain coordination under a revenue-sharing contract with corporate social responsibility and partial demand information," International Journal of Production Economics, Elsevier, vol. 205(C), pages 1-14.
    20. Wang, Yong & Luo, Siyu & Fan, Jianxin & Zhen, Lu, 2024. "The multidepot vehicle routing problem with intelligent recycling prices and transportation resource sharing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03169-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.