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Dynamic Adjustment Mechanism and Differential Game Model Construction of Mask Emergency Supply Chain Cooperation Based on COVID-19 Outbreak

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  • Shufan Zhu

    (School of Management, Wuhan University of Technology, Wuhan 430070, China)

  • Kefan Xie

    (School of Management, Wuhan University of Technology, Wuhan 430070, China)

  • Ping Gui

    (School of Management, Wuhan University of Technology, Wuhan 430070, China)

Abstract

Incorporating the impact of the COVID-19 pandemic on the mask supply chain into our framework and taking mask output as a state variable, our study introduces the differential game to study the long-term dynamic cooperation of a two-echelon supply chain composed of the supplier and the manufacturer under government subsidies. The study elaborates that government subsidies can provide more effective incentives for supply chain members to cooperate in the production of masks compared with the situation of no government subsidies. A relatively low wholesale price can effectively increase the profits of supply chain members and the supply chain system. The joint contract of two-way cost-sharing contract and transfer payment contract can promote production technology investment efforts of the supply chain members, the optimum trajectory of mask production, and total profit to reach the best state as the centralized decision scenario within a certain range. Meanwhile, it is determined that the profits of supply chain members in the joint contract can be Pareto improvement compared with decentralized decision scenario. With the increase of production technology investment cost coefficients and output self-decay rate, mask outputs have shown a downward trend in the joint contract decision model. On the contrary, mask outputs would rise with growing sensitivity of mask output to production technology investment effort and increasing sensitivity of mask demand to mask output.

Suggested Citation

  • Shufan Zhu & Kefan Xie & Ping Gui, 2021. "Dynamic Adjustment Mechanism and Differential Game Model Construction of Mask Emergency Supply Chain Cooperation Based on COVID-19 Outbreak," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:3:p:1115-:d:484707
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    References listed on IDEAS

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    1. Haibo Chen & Zongjun Wang & Xuesong Yu, 2021. "Sustainability Strategies of Equipment Introduction and Overcapacity Risk Sharing in Mask Emergency Supply Chains during Pandemics," Sustainability, MDPI, vol. 13(18), pages 1-17, September.
    2. Dragan Pamucar & Ali Ebadi Torkayesh & Sanjib Biswas, 2023. "Supplier selection in healthcare supply chain management during the COVID-19 pandemic: a novel fuzzy rough decision-making approach," Annals of Operations Research, Springer, vol. 328(1), pages 977-1019, September.
    3. Nishant Saravanan & Jessica Olivares-Aguila & Alejandro Vital-Soto, 2022. "Bibliometric and Text Analytics Approaches to Review COVID-19 Impacts on Supply Chains," Sustainability, MDPI, vol. 14(23), pages 1-33, November.
    4. Yuntao Bai & Yuan Gao & Delong Li & Dehai Liu, 2022. "Coordinated Distribution or Client Introduce? Analysis of Energy Conservation and Emission Reduction in Canadian Logistics Enterprises," Sustainability, MDPI, vol. 14(24), pages 1-14, December.
    5. Jianhua Chen & Ting Yin, 2023. "Transmission Mechanism of Post-COVID-19 Emergency Supply Chain Based on Complex Network: An Improved SIR Model," Sustainability, MDPI, vol. 15(4), pages 1-19, February.
    6. Shuo-Fang Liu & Jui-Feng Chang & Ming-Hong Wang, 2021. "Mask Design for Life in the Midst of COVID-19," Sustainability, MDPI, vol. 13(14), pages 1-18, July.

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