Dual-channel ordering strategy of new energy vehicles

Abstract

Promotion of new energy vehicles (NEVs) is an important strategy to cope with the energy challenges and environmental pollution. In this paper, we propose a dual-channel supply chain model to study the optimal strategy in promotion of new energy vehicles with consideration of subsidies. We present the properties of the models and analyze the influence of the proportion of sales orders, government subsidies, and wholesale prices. We find that government subsidies affect the optimal ordering decision in different dual-channel strategies.