Dynamic decisions of the manufacturer-led closed-loop supply chain considering altruistic behavior in EV battery

Hongfang Song, Xifan Li, Junlin Chen (), Liliana Mitkova () and Guijun Li
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Hongfang Song: Hebei University
Xifan Li: Central University of Finance and Economics [Beijing]
Junlin Chen: LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]
Liliana Mitkova: LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], UEVE - Université d'Évry-Val-d'Essonne
Guijun Li: Hebei University

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Abstract: Behavioral studies have found that altruism can affect the decision of Closed-Loop Supply Chain (CLSC) significantly. Altruistic behaviors on optimal decision-making in dynamic environments are challenging problems. To solve these difficulties, we individually propose three types of cases and using differential game theory and Bellman theory: (a) a manufacturer behaving altruistically to third-party recyclers; (b) one manufacturer cooperating with other participants to have altruism; (c) the manufacturer collaborating with other participants to behave non-altruistically. We conduct optimal dynamic decisions for participants associated with quality of EV batteries, further explore the rule of time evolution considering altruistic behavior. We find three interesting results as follows: altruistic behavior of the manufacturer is advantageous to profitability of CLSC especially when it cooperates with a retailer and one of third-party recyclers. Altruistic behavior of the manufacturer is a behavior of "profit transferring" and moderate altruistic behavior is conducive to the profitability of CLSC and cooperation motivates activity of recycling. In dynamic situations, quality level of EV batteries is polarized. When the manufacturer has altruistic behavior to one or two third-party recyclers, long-term development of CLSC is affected by the deterioration of quality level of EV batteries.

Keywords: Closed-loop supply chain; Dynamic decisions; Altruistic behavior; Cooperation strategies; Differential game (search for similar items in EconPapers)
Date: 2024-09-25
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Published in Journal of Cleaner Production, 2024, 472, pp.143385. ⟨10.1016/j.jclepro.2024.143385⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04689639

DOI: 10.1016/j.jclepro.2024.143385

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