Cheng, Yongwei, Fan, Tijun and Zhou, Li ORCID: 0000-0001-7132-5935 (2022) Optimal strategies of automakers with demand and credit price disruptions under the dual-credit policy. Journal of Management Science and Engineering, 7 (3). pp. 453-472. ISSN 2096-2320 (Print), 2589-5532 (Online) (doi:https://doi.org/10.1016/j.jmse.2021.12.006)

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Abstract

In this paper, a production and pricing decision model for automakers under the dual-credit policy is formulated. Then, with consideration of demand and credit price disruptions, a nonlinear programming model that maximizes automakers’ profit and constrains the production of fuel vehicles (FVs) and new energy vehicles (NEVs) is investigated. Furthermore, four strategies that involve adjusting the production or price of FVs and NEVs are proposed, and four optimal solutions for each strategy are obtained. Finally, 16 scenarios are comprehensively analyzed, and a case study involving demand and credit price disruptions is conducted. The results show that the dual-credit policy has a positive impact on the development of NEVs, especially in early stages of NEV development. The FV credit coefficient has a significantly positive impact on the probability of automakers adopting adjustment strategies, while the NEV credit coefficient has almost no such impact. Moreover, automakers are inclined to adjust the prices of NEVs or the production of FVs to cope with demand and credit price disruptions.

Item Type:	Article
Uncontrolled Keywords:	decision analysis; automakers; demand disruption; credit price disruption; dual-credit policy
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HF Commerce
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Department of Systems Management & Strategy Faculty of Business > Networks and Urban Systems Centre (NUSC) Faculty of Business > Networks and Urban Systems Centre (NUSC) > Connected Cities Research Group
Last Modified:	08 Jul 2022 12:04
URI:	http://gala.gre.ac.uk/id/eprint/34739

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