Dynamic delay-based game approach in car and petrol supply chains under government intervention

Atieh Fander and Saeed Yaghoubi

Applied Energy, 2024, vol. 376, issue PA, No S0306261924015599

Abstract: Effective decision-making in a temporal context is challenged by the enduring impacts of delays, where decisions made in a certain period are influenced by choices made in preceding periods. This paper delves into the analysis of decision-making in a dynamic game system characterized by delay impact on decisions. Notably, it pioneers the application of a game approach to detect the intricate relationship between car and petrol supply chains operating under conditions of dynamism and uncertainty. The marginal profit method is applied to deal with the dynamic game model. Furthermore, this article investigates the improvement of green car levels, on member profits. In the car supply chain, the car manufacturer sells two distinct product types: green and regular. In this paper, green cars refer to cars with low petrol consumption, and as gas consumption decreases, the green level of the car ascends. This study marks the first instance where optimal production capacity allocation is examined within the framework of delay and uncertainty. Considering the government's initiative to curtail petrol consumption in automobiles, the effects of the government's supporting role are also analyzed in this paper. As a result, the greenness level witnessed a 4.1-fold increase, leading to an 81.7% surge in the demand for green cars, consequently boosting the profit of the entire car supply chain. Several numerical experiments of a real case were examined to evaluate the performance of the proposed models. Finally, some sensitivity analyses were applied to the principal parameters of the model to extract managerial insights.

Keywords: Car supply chain; Petrol supply chain; Dynamic game; Delay impact; Government intervention; Green level (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1016/j.apenergy.2024.124176

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