Wholesale Price Research Articles

EXPRESS: Impact of Unreliable Supplier on a Supply Chain with Demand-Generating Marketing

A firm often has multiple sourcing options for its product. Some suppliers may have longer lead times but offer lower prices, whereas reliable suppliers with quick response capabilities may have higher prices. Purchasing from a cheaper, less reliable supplier can help a firm lower its inventory cost but will expose itself to potential risks. This paper analyzes a supply chain in which a manufacturer can source from a cheaper, less reliable supplier with a long lead time and/or a reliable quick-response supplier. The manufacturer also has to make demand-generating marketing investments before the selling season. Our analysis shows that if the unreliable supplier’s reliability is low, the reliable supplier will charge a low wholesale price; otherwise, it will choose a high wholesale price. As the unreliable supplier’s reliability improves, the manufacturer is inclined to increase its marketing investment, but there is a drop at some critical threshold. Interestingly, the existence of an unreliable supplier can lead to a win-win outcome for the reliable supplier and the manufacturer. The unreliable supplier’s reliability has non-monotonic effects on the equilibrium profits of the reliable supplier and the manufacturer.

Evaluating Temporal Price Behaviour of Rice in Bangladesh

Aims: The agriculture sector in Bangladesh is predominantly centered on rice production and it is the staple food. High prices of rice can affect the consumers adversely. This study aimed to analyze the annual price dynamics of rice in Bangladesh. Study Design: The study was based on secondary time series data of prices of different category of rice at wholesale and retail level. Both nominal and deflated prices were sued to analyze for achieving the objectives of the study. Place and Duration of Study: Secondary time series data of price for different category of rice from country as a whole from 1991 to 2021 were used to assess its annual price behavior. Methodology: Descriptive statistics were employed to assess the annual price fluctuations, while linear regression analysis was used to evaluate the annual price trends. Results: The analysis revealed significant variations in the annual wholesale and retail prices of rice (both fine and coarse). Notably, coarse rice exhibited greater price fluctuations compared to fine rice in both wholesale and retail markets. Price fluctuation at retail level for fine rice is greater than the wholesale level but in case of coarse rice, price fluctuation at retail level is lower than wholesale level. The study further found that the wholesale price trend for fine rice increased more sharply than that of coarse rice, a pattern that was also reflected in retail prices. Conclusion: The study indicates that over the study period, the price of fine rice experienced a more pronounced fluctuate and increase compared to coarse rice.

Green degree decision and pricing strategy of dual-channel supply chains

With the prevalence of green supply chains, the government has basic requirements for companies’ green investments and outcomes while consumers increasingly favor green products. Thus, green degree decision has garnered significant attention from manufacturers. This paper incorporates green degree decisions into a dual-channel supply chain and adopts a Stackelberg model to analyze the green degree and pricing strategies under centralized and decentralized decisions. We find that, when the manufacturer only decides on price, dual-channel choice is always the optimal strategy under centralized decision-making; however, under decentralized decision-making, the dual-channel choice will be chosen only when the wholesale price is low. Considering green degree decision, both direct and indirect channel prices increase with the green degree, and the indirect channel price is more sensitive to changes in the green degree under centralized decision-making; and higher green degrees are always advantageous for the retailer, but the manufacturer’s profit initially decreases and then increases as the green degree rises under decentralized decision-making. Moreover, the wholesale price is used as a strategic tool for the manufacturer to control the distribution channel, particularly when the green degree is not introduced, the manufacturer can always ensure the introduction of dual channels. Besides, higher consumers’ environmental awareness is always beneficial to channel members, as it promotes channel prices and green degree. This study provides strategic insights for optimizing pricing and green degree decisions in dual-channel supply chains to achieve better economic and environmental outcomes.

Carbon emission reducing and financing strategies of capital-constrained supply chains using equity financing under different power structures

AbstractThis study considers a low-carbon supply chain model comprised of a capital-constrained manufacturer and a retailer under a cap-and-trade system. These two parties can choose from two financing modes: bank financing or mixed financing, in which the latter combines bank financing with equity financing. Two decision-making power structures are formulated, namely the Nash game model and the retailer-led Stackelberg game model. Subsequently, a comparative analysis of equilibrium outcomes for both parties within these power structures is performed, yielding the following insights: (1) In the bank financing mode, retailers find greater profitability in adopting dominance. When emission reduction efficiency is high, manufacturers obtain more profit within a Nash game context. However, when emission reduction efficiency is low, manufacturers accrue more profit in a Stackelberg game context. In the mixed financing mode without cap-and-trade regulations, supply chain participants do not express a preference for any specific game structure. (2) Without cap-and-trade regulation, in both the Nash and Stackelberg game models, the supply chain participants find more profitability in mixed financing when carbon emission reduction efficiency is high. Meanwhile, bank financing proves more profitable when the carbon emission reduction is low. Moreover, this study investigates the impact of wholesale and retail prices of low-carbon products on the financing strategies of the supply chain participants under different power structures and financing modes. Additionally, extended models are considered, including the manufacturer-led Stackelberg game structure and the capital-constrained manufacturer with a certain amount of initial capital.

Hybrid modeling approaches for agricultural commodity prices using CEEMDAN and time delay neural networks

Improving the forecasting accuracy of agricultural commodity prices is critical for many stakeholders namely, farmers, traders, exporters, governments, and all other partners in the price channel, to evade risks and enable appropriate policy interventions. However, the traditional mono-scale smoothing techniques often fail to capture the non-stationary and non-linear features due to their multifarious structure. This study has proposed a CEEMDAN (Complete Ensemble Empirical Mode Decomposition with Adaptive Noise)-TDNN (Time Delay Neural Network) model for forecasting non-linear, non-stationary agricultural price series. This study has evaluated its suitability in comparison with the other three major EMD (Empirical Mode Decomposition) variants (EMD, Ensemble EMD and Complementary Ensemble EMD) and the benchmark (Autoregressive Integrated Moving Average, Non-linear Support Vector Regression, Gradient Boosting Machine, Random Forest and TDNN) models using monthly wholesale prices of major oilseed crops in India. Outcomes from this investigation reflect that the CEEMDAN-TDNN hybrid models have outperformed all other forecasting models on the basis of evaluation metrics under consideration. For the proposed model, an average improvement of RMSE (Root Mean Square Error), Relative RMSE and MAPE (Mean Absolute Percentage Error) values has been observed to be 20.04%, 19.94% and 27.80%, respectively over the other EMD variant-based counterparts and 57.66%, 48.37% and 62.37%, respectively over the other benchmark stochastic and machine learning models. The CEEMD-TDNN and CEEMDAN-TDNN models have demonstrated superior performance in predicting the directional changes of monthly price series compared to other models. Additionally, the accuracy of forecasts generated by all models has been assessed using the Diebold-Mariano test, the Friedman test, and the Taylor diagram. The results confirm that the proposed hybrid model has outperformed the alternative models, providing a distinct advantage.

Optimal Strategies for E-Commerce Platform Supply Chain: Carbon Emission Reduction and Financing

In the context of global carbon emission reduction (CER) targets and slowing economic growth, it is imperative for suppliers to make informed choices regarding CER and financing strategies. However, limited research has explored the impact of financing strategies on CER. This paper develops a supply chain model that includes a supplier, a manufacturer, an E-commerce platform (E-C platform), and consumers with a preference for low-carbon products. The supplier sets the wholesale price, while the manufacturer controls both the production quantity and the unit amount of CER. We examine whether the manufacturer will invest in CER with sufficient capital or under various financing scenarios, namely (1) traditional production with sufficient capital (Scenario ST); (2) CER implementation with sufficient capital (Scenario SG); (3) CER implementation with E-C platform financing (Scenario EG); (4) CER implementation with bank financing (Scenario BG). Through comparative analysis, the analysis reveals that, regardless of the financing method chosen, the supplier’s profit and the manufacturer’s production quantity increase when the manufacturer invests in CER technology innovation compared to the traditional scenario. Furthermore, in terms of the manufacturer’s profit, if the service cost of bank financing exceeds a certain threshold, the manufacturer should either seek financing from the E-C platform or abandon the CER investment. Additionally, with respect to CER outcomes, Scenario BG outperforms Scenario EG. These findings provide a theoretical foundation and decision-making support for supply chain participants when addressing carbon reduction and financing strategy decisions.

Pricing policies for printed and electronic books in a triple-channel supply chain

Purpose This study aims to investigate the pricing dynamics within a triple-channel supply chain. The publisher can sell printed books (p-books) through bookstores or online direct sales, and electronic books (e-books) are sold directly through the internet. The primary objectives include determining optimal wholesale and final prices for p-books, assessing the profitability of introducing e-books, comparing profits across channels and supply chain modes and identifying optimal demand volumes. Design/methodology/approach The research uses first-order derivatives and the Stackelberg game to analyze the pricing strategies. Two supply chain modes, centralized and decentralized, are considered, and various parameters are examined to understand their impact on prices, demand volumes and final sales profit. Findings The results indicate that the e-book is either not published or is introduced simultaneously with the printed version in both modes. In the decentralized mode, the wholesale price of a p-book is equivalent to the final price in the bookstore channel in the centralized mode. One channel among the three selling channels is used to maximize the total profit in the centralized supply chain, whereas all demand should be fulfilled through either online direct sales or e-book channels in the decentralized mode. Originality/value This paper introduces a comprehensive triple-channel book supply chain model, considering cross-price sensitivities and lag times for e-books. The study provides insights into the dynamics of the book industry and compares them with existing literature, contributing to a broader understanding of the pricing strategies in a triple-channel context.

Behavior-based pricing and wholesale contracting in competing supply chains with informative advertising

The development of e-commerce has enhanced the ability of firms to identify existing and potential customers and set targeted prices accordingly, which is known as behavior-based pricing (BBP). This study investigates the effect of manufacturers’ informative advertising on the strategic interaction between wholesale price contracts (long-term or short-term) and downstream pricing mechanisms (BBP or not). We consider two horizontal differentiated supply chains in which firms not only compete in prices but also in informative advertising which is used to generate awareness of products. We find that the impact of BBP on channel members’ advertising, pricing and profits is the tradeoff of multiple effects. With BBP, manufacturers will advertise less and both retailers and manufacturers prefer short-term wholesale contracts. Moreover, BBP eases the price competition in the first period but intensifies it in the second period, especially for short-term wholesale contracts. In equilibrium, BBP is adopted by retailers only when the advertising cost is low, and manufacturers choose short-term wholesale contracts. Furthermore, BBP always hurts the consumer surplus and social welfare which means that targeted measures are needed to regulate firms’ price discrimination.

Cooperation and Profit Allocation Mechanism of Traditional and New Energy Complementary Power Generation: A Framework for Renewable Portfolio Standards

To boost the sustainable development of energy and the environment, a new power system with clean energy sources has been proposed by the Chinese government and traditional coal-fired power units are being transformed into regulation service providers for this new energy power system. Then, in this study, complementary power generation cooperation between traditional coal-fired power and new energy power producers is analyzed and discussed, and the energy quota agents, power sellers, are also included. Based on the cooperation game idea, different decision-making models of the tripartite power entities are elaborately constructed. Then, according to the price linkage mechanism between new energy and traditional thermal power, the profit of all power subjects is calculated and the profit allocation process is also analyzed. The conclusions show that the similarity of the two wholesale power price coefficients verifies the symmetry of the cooperative status of power producers. For BPC and SPC quota patterns, for example, BPC is bundled with new energy power and green certificates, whereas SPC is separate. Under the SPC pattern, there is a critical value for effective cooperation between the two power producers in the price range of traditional thermal power or new energy, which can achieve a win–win situation of increasing economic benefits and the consumption scale. Under the BPC pattern, the dynamic benefit compensation mechanism, which is the corrected Shapley value based on the RPS quota ratio, can solve the compressed profit of traditional coal-fired power producers. In contrast, the overall effect of profit allocation using the nucleolar method is not ideal. This study aims to give full play to the elastic induction effect of RPS to promote the sustainable transformation of traditional thermal power energy, especially combining the market mechanism to encourage traditional coal-fired power units to improve green technology to advance the construction of the green power market in China.

Pricing and Replenishment Decision System Based on LSTM

Fresh supermarket vegetables have a very short shelf life, and the quality of vegetables will also be affected by the storage time. If most of the goods are not sold on that day, they will not be sold on the next day. From the demand side, the sales volume of vegetables is related to the supply side of vegetables from April to October. At the same time, the sales space of the supermarket is limited, which makes a reasonable sales portfolio extremely important. The commercial overpricing replenishment decision system based on LSTM analyzes the relationship between daily sales volume and cost-plus pricing for each vegetable category and single product over three years. It predicts the sales volume and wholesale price of each category for the next week, determining replenishment volume and pricing strategy based on forecasted sales volume and average loss rate. The system considers limited sales space and uses the entropy method to calculate weights for key indicators like total profit. It employs the TOPSIS method to sort items, considering forecasted wholesale prices, to select items for pricing decisions. The system aims to maximize total profit while ensuring the supermarket meets minimum display conditions. By assisting supermarkets in formulating more reasonable pricing strategies, it aims to reduce overstock, backlog, or stock shortages, ultimately improving sales volume and operational efficiency.

How Retailers Change Ordering Strategies When Suppliers Go Direct

This study empirically investigates whether and to what extent suppliers’ decisions to start selling directly to end consumers provoke reactions in the ordering strategy of downstream channel partners, such as independent multibrand retailers. Using a multimethod approach that combines transactional data, survey data, and a scenario-based experiment, the authors demonstrate that retailers tend to exit these relationships after a direct channel introduction, as exhibited by their strategic decisions to order fewer distinct stockkeeping units (SKUs), accompanied by higher wholesale prices per unit. On average, retailers decrease the number of distinct SKUs ordered by 15 (or 18.75%) and pay a higher average wholesale price by €.79 (or 20.84%). Yet the responses also differ across retailers, reflecting moderating impacts of retailer power, expertise, and relationship quality. Retailer power emerges as a robust moderating factor, with more powerful retailers indicating a lower propensity to exit the relationship. Expertise and relationship quality have more nuanced influences on retailers’ ordering strategies. The multimethod approach serves to reveal the underlying mechanisms of these moderating effects, such that both rational (coercive power and switching costs) and emotional (conflict and confidence) considerations are in play.

Determinants of the Relationship between Wholesale and Retail Energy Prices in the Czech Republic

Rising energy prices have become a focus of interest for politicians at the international, European, and national levels. Energy prices are the main determinant of profitability or even the existence of the industrial sector. So, it is accepted that energy policy aims to ensure a secure, sustainable, competitive, and affordable energy supply for households and businesses. However, the recent geopolitical situation has significantly affected the energy policy of the European Union, raising concerns about energy security and an energy crisis. This crisis has had social, economic, and political consequences, including energy poverty. In this context, it is essential to understand the determinants of the relationship between wholesale and retail energy prices. This paper presents a model proposal to be used by the Czech Energy Regulatory Authority. The model of average retail prices depends on the type of contract - spot or forward, with the three-year forward contract having the largest weight on the retail price. Therefore, our study shows that long-term contracts significantly impact retail energy prices, highlighting the importance of regulatory monitoring of market strategies. Methodologically, the model is based on a multivariate regression analysis solved with the least absolute deviations and data for the period 2012 to 2023. The findings of the study contribute to a better understanding of the complexity of the dynamics of energy prices and support policymakers while attempting to ensure energy affordability and sustainability.

Inventory pledge financing decisions based on a permissioned blockchain by controlling fraudulent risk

Inventory pledge financing (IPF) is a crucial financing way for small and medium-sized enterprise (SMEs). But banks are reluctant to finance SMEs due to fraudulent risk in practice. This paper discusses the application of blockchain in IPF, particularly its impact on mitigating fraud risks. Utilizing game theory models, we illustrate how the finance and operation decisions of participants, along with supply chain efficiency, are influenced by the introduction of blockchain. Meanwhile, equilibrium outcomes are analysed and numerical study is given. Our analysis reveals that under certain conditions, blockchain integration can lead to reduced loan interest rates, lower wholesale prices, increased order quantities by buyers, and enhanced supply chain efficiency. Lastly, we develop a protocol to demonstrate the transfer of digital warehouse receipt on a permissioned blockchain to avoid fraudulent risk. This study provides a theoretical foundation, and a guidance for decisions-making in blockchain-enabled IPF schme.

Assessing Economic Sustainability in Gujarat’s Cereal Sector: Trends in Costs, Prices, and MSP (2001 – 2022)

The data highlights the changes in MSP over the years for each cereal. It's evident that MSPs have generally increased over time, although the rates of increase vary among different crops and years. The correlation analysis provides valuable insights into the relationships between MSP, wholesale prices, farm harvest prices, and the cost of production. Strong positive correlations between these variables indicate significant interdependence within the agricultural market. Notable changes in increasing order in MSP (Minimum support price) was seen over years in all cereals. Years with negative values in excess of actual MSP over COP (Cost of Production) suggested farmers were not able to cover even COP and years with positive values suggested farmers were in profitable margin after covering COP. Cost and prices of all the selected cereals were having high correlation between MSP, WP (Wholesale Price), FHP (Farm Harvest Price), COP (C2) and COP (A2 + FL (Family Labour). Highest growth rate amongst the particulars was seen for MSP in pearl millet and lowest for COP (A2 + FL) in pearl millet. More variability was seen in MSP for pearl millet and low variability was seen in MSP for Wheat. Overall, analysis provides a comprehensive understanding of the agricultural landscape in Gujarat state.

Signaling or not? The pricing strategy under fairness concerns and cost information asymmetry

Supply chain fairness issues have become crucial and prevalent recently, whereas the operational decisions in the fair chain are more and more challenging when involving information asymmetry. Considering the fact that the upstream supplier of a chain generally has private production cost information, this paper investigates how the supplier strategically makes pricing decisions under the own private information and the downstream fairness concerns. Based on inequity aversion theory, we set up a signaling game between the supplier and the retailer with two kinds of inequity aversion, disadvantageous inequity aversion and advantageous inequity aversion, respectively. Compared with the scenario of symmetric information, under asymmetric information, we find that: the high-cost supplier distorts the wholesale price upward to avoid the low-cost supplier's price mimicry when the retailer has disadvantageous inequity aversion and the cost difference between the two types of suppliers is small; the supply chain's expected profit and expected utility may increase due to the reason that the low-cost supplier distorts his wholesale price downward when the retailer has advantageous inequity aversion, which mitigates the double marginalization. Moreover, we extend the base model to the scenario of endogenous prior probability on supplier cost type and we show that when the retailer has disadvantageous inequity aversion, cost information asymmetry may improve the willingness of the high-cost supplier to become the low-cost supplier. Our results can provide some practical insights on managing cost information asymmetry from the perspectives of the supply chain and the industry.

Assessing cap-and-trade regulation's impact on dual-channel green supply chains under disruption

The rise of online shopping has intensified focus on the dual-channel supply chain, highlighting the need to balance profitability and eco-friendliness under competition and disruptions. This study investigates how cap-and-trade regulations affect the performance of a dual-channel green supply chain amidst disruptions. It explores the interplay between pricing and greening strategies under cap-and-trade conditions and varying market demand disruptions. The model features a Stackelberg game between a manufacturer of eco-friendly products and a retailer, applied to both centralized and decentralized systems. Findings reveal that cap-and-trade regulations affect centralized and decentralized supply chains differently. Centralized systems show higher sensitivity in greenness levels to disruptions compared to decentralized ones. Lower greening cost coefficients lead to higher greenness levels in both models, but centralized systems outperform decentralized ones when cap-and-trade regulations are absent. However, the performance of centralized systems deteriorates significantly during severe disruptions, whereas decentralized systems maintain profitability growth. Additionally, the study finds that increased greening costs reduce the optimal greenness level, impacting wholesale and sale prices. Centralized supply chains exhibit greater variability in carbon emissions and profits under disruption conditions, while decentralized systems show more stability and higher profitability, particularly in severe disruptions. The findings also indicate that a dynamic cap-and-trade system can enhance adaptability and efficiency in managing emissions during disruptions.

Optimal financing strategies for low‐carbon supply chains: A Stackelberg game perspective

AbstractThis study constructs a Stackelberg game model between low‐carbon manufacturers and capital‐constrained retailers. Considering the manufacturer's financing model, the manufacturer's investment model, and the internal blended financing model, it studies the optimal wholesale price of manufacturers. This paper investigates the impact of consumers' low‐carbon preference, the financing interest rate of manufacturers, investment ratio, investment return on carbon emission reduction investment, and supply chain pricing. The conditions for low‐carbon supply chain participants to choose the best financing mode and the impact of different financing models on the performance of low‐carbon supply chains were obtained.

Systemic barriers to access pharmaceutical-sponsored patient assistance programs: Implications for health equity and care delivery at safety-net systems.

107 Background: The rising cost of cancer care, driven in large by oncology drugs, has a significant impact on access to care and contributes to disparities. Pharmaceutical-sponsored patient assistance programs (PAPs) are intended to improve access to care; however, vulnerable populations may experience delays, denials, and treatment interruptions due to complexity of the application process and variable qualifying requirements. We present the impact of a pharmacy-run process to facilitate access to PAPs at a safety-net institution. Methods: Parkland Health (PH) is the safety-net system for Dallas County, which has one of the highest uninsured rates in the US. PH provides free health care to uninsured patients below 250% of the federal poverty income level. Hematology-Oncology patients who are prescribed medications with an existing PAP are identified in a work queue within the EHR. A team of licensed pharmacy technicians - Medication Access Technicians (MATs) - screen patients and if eligible, assist in filling and submitting the application, and follow up with PAP sponsors to ensure timely review and approvals. MATs also monitor refills and assist in PAP renewals to prevent interruptions in care. In this study, we used the average wholesale price to quantify the value of the medications provided through PAPs. Data for 10/01/22 through 09/30/23 are presented here. Results: During the study period, MATs enrolled 548 uninsured patients (90% Hispanic/Black) in PAPs for 38 unique clinic-administered drugs, with an estimated value of 45.2 million (M), averaging 78,853 per patient. The highest value and most common clinic-administered PAP drugs were pembrolizumab (96 patients, $8 M) and rituximab (159 patients, $5 M), respectively. For oral agents, MATs enrolled 77 uninsured patients (84% Hispanic/Black) in PAPs for 20 unique medications with an estimated value of 8.8 M, averaging 114,711 per patient. Dasatinib was both the most common and highest value PAP oral drug, with 24 patients and an estimated value of 3.6 M. Of the 38 PAPs for clinic-administered drugs, 25 did not include replacement for dispensed medications. Legal US residence was required by 7 PAPs. The institutional investment by PH (MAT salaries) is estimated at 620,000 annually. Conclusions: A dedicated team of MATs at PH facilitated access to care through PAP enrollments, reduced treatment interruptions by renewing applications, and reduced institutional drug expenditure, allowing investment in other care delivery initiatives. PAPs are philanthropic by nature and requirements such as legal residence and no-replacement for dispensed medications may negatively impact specific segments of our communities, or result in treatment delays. Advocacy by professional organization and patient groups is warranted to expand access to these potentially life-saving programs.

Managing strategic inventories in a three-echelon supply chain of durable goods

Firms can hold strategic inventory to bargain with their suppliers about wholesale prices. In this paper, we model a three-echelon durable goods supply chain consisting of a supplier, a wholesaler, and a retailer, where the latter two firms can choose to hold strategic inventory. Our major findings are as follows. First, contrary to the literature, our study shows that the retailer's use of strategic inventory benefits all supply chain members, irrespective of whether the wholesaler holds strategic inventory. Second, the strategic inventories of the wholesaler and the retailer suppress each other when the holding cost is low. Otherwise, the retail strategic inventory can stimulate the wholesale strategic inventory. Third, after the retailer employs strategic inventory, introducing wholesale strategic inventory will harm each supply chain member. However, after the wholesaler employs strategic inventory, introducing retail strategic inventory can benefit all members. For the entire supply chain, holding strategic inventory exclusively at the retailer is optimal. Fourth, when product durability is high, the supplier may suffer from the wholesaler's strategic inventory. Additionally, the retailer's strategic inventory can solve the time inconsistency problem associated with durable goods. Finally, we extend our main model to consider multiple retailers and different holding costs. Our analysis confirms the robustness of our major findings and managerial insights.

Power battery modular innovation investment strategies with government subsidy policies

This paper investigates the closed-loop supply chain decisions of battery manufacturers considering innovation investments and different subsidy methods provided by the government. The analysis encompasses four scenarios: whether battery manufacturers engage in innovation investments and whether the government opts for technology R&D subsidies or production subsidies. The study finds that innovation investments by battery manufacturers can enhance the modularization level of batteries. The reward or penalty measures for recycling quality imposed on automobile manufacturers elevate the quality of battery recycling, and also increase the wholesale price of batteries and the retail price of automobiles. After implementing R&D and production subsidies, both the modularization level of batteries and the profits of supply chain members exceed those without subsidies, though these subsidies do not affect the quality of battery recycling. R&D subsidies more effectively promote innovation capacity and product quality among battery manufacturers, whereas production subsidies more significantly boost the profits of both battery manufacturers and automobile manufacturers. Therefore, subsidy measures should be tailored according to different stages of the power battery industry's development. Regardless of whether battery manufacturers invest in innovation or whether the government provides subsidies, collaboration between battery manufacturers and automobile manufacturers is essential to coordinate the closed-loop supply chain. The research findings offer valuable guidance for formulating subsidy policies in the new energy vehicle industry across different periods, and also provide theoretical insights for decision-making behaviors among related enterprises.