Abstract:

This paper develops an electric vehicle (EV) battery closed-loop supply chain considering government incentives. A manufacturer sells new and remanufactured EV batteries through a retailer, and the manufacturer collects these used EV batteries through third-party collector. This paper focuses on an EV battery closed-loop supply chain. The authors present two models to explore incentive (reward) strategies under different channels: the manufacturer’s reward strategy, the manufacturer’s reward strategy and the retailer’s reward strategy. Through theoretical study and numerical analysis, the results show that (1) total profit is increasing with increase of reward intensity, and using a more favorable reward is expected to obtain higher total profit in model 2; (2) higher recycling rate is associated with higher reward intensity both different channels; (3) optimal retail price increases with the increase of reward both different channels.