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Research on the coordination of the power battery echelon utilization supply chain considering recycling outsourcing

Research on the coordination of the power battery echelon utilization supply chain considering recycling outsourcing
Research on the coordination of the power battery echelon utilization supply chain considering recycling outsourcing

In the year 2020, the cumulative production and sales of new energy vehicles in China have reached 1.366, and 1.367 million units, which have increased by 7.5% and 10.9% over the previous year. To solve the problem of used batteries, the power battery echelon use system has been proposed. This paper constructs a three-party game supply chain model for one battery manufacturer, one car manufacturer, and one third-party recycler to analyze the impact of the external environment on the supply chain and to a new coordination contract. The research results show that: the retail price of the high-capacity used battery always changes in the same direction as the retail price of the low-capacity used battery. The profit of the battery manufacturer and third-party recycler in the decentralized decision-making model is affected by the retail price of the low-capacity used battery, but the car manufacturers are not affected by it. With the increase in the retail price of the low-capacity used battery, the profits of the third-party recycler will be greater than that of the car manufacturer. The use of profit transfer contracts and the cost-sharing contract can coordinate the supply chain and increase the demand for automobiles and the actual recycling volume. Interestingly, for the third-party recycler, the smaller the cost-shared, the more additional benefits it will get. The actual recycling volume is mainly affected by the market environment.

Battery recycling, Echelon utilization, EPR, Supply chain coordination
0959-6526
Zhao, Senlin
0e2ffe1c-0476-47ca-8500-9c8a42e50c06
Ma, Chenhui
7ae8329f-d10a-46b9-b48d-95a84ac30ca1
Zhao, Senlin
0e2ffe1c-0476-47ca-8500-9c8a42e50c06
Ma, Chenhui
7ae8329f-d10a-46b9-b48d-95a84ac30ca1

Zhao, Senlin and Ma, Chenhui (2022) Research on the coordination of the power battery echelon utilization supply chain considering recycling outsourcing. Journal of Cleaner Production, 358, [131922]. (doi:10.1016/j.jclepro.2022.131922).

Record type: Article

Abstract

In the year 2020, the cumulative production and sales of new energy vehicles in China have reached 1.366, and 1.367 million units, which have increased by 7.5% and 10.9% over the previous year. To solve the problem of used batteries, the power battery echelon use system has been proposed. This paper constructs a three-party game supply chain model for one battery manufacturer, one car manufacturer, and one third-party recycler to analyze the impact of the external environment on the supply chain and to a new coordination contract. The research results show that: the retail price of the high-capacity used battery always changes in the same direction as the retail price of the low-capacity used battery. The profit of the battery manufacturer and third-party recycler in the decentralized decision-making model is affected by the retail price of the low-capacity used battery, but the car manufacturers are not affected by it. With the increase in the retail price of the low-capacity used battery, the profits of the third-party recycler will be greater than that of the car manufacturer. The use of profit transfer contracts and the cost-sharing contract can coordinate the supply chain and increase the demand for automobiles and the actual recycling volume. Interestingly, for the third-party recycler, the smaller the cost-shared, the more additional benefits it will get. The actual recycling volume is mainly affected by the market environment.

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More information

Accepted/In Press date: 21 April 2022
e-pub ahead of print date: 26 April 2022
Published date: 11 May 2022
Keywords: Battery recycling, Echelon utilization, EPR, Supply chain coordination

Identifiers

Local EPrints ID: 488785
URI: http://eprints.soton.ac.uk/id/eprint/488785
ISSN: 0959-6526
PURE UUID: 4456455b-acf9-4654-92c1-d73e9be865eb
ORCID for Senlin Zhao: ORCID iD orcid.org/0000-0002-6815-2735

Catalogue record

Date deposited: 05 Apr 2024 16:40
Last modified: 06 Jun 2024 02:21

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Contributors

Author: Senlin Zhao ORCID iD
Author: Chenhui Ma

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