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Chinese Journal of Management Science ›› 2023, Vol. 31 ›› Issue (11): 1-11.doi: 10.16381/j.cnki.issn1003-207x.2020.2437

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Research on the Decision-making of Emergency Eedical Supplies under Government-Subsidized Government-Enterprise Agreement Reserve

Jie WEI(),Ying-ying ZHENG,Chang LIU,Rui ZHANG   

  1. School of Management,Hangzhou Dianzi University,Hangzhou 310018,China
  • Received:2020-12-23 Revised:2021-03-09 Online:2023-11-15 Published:2023-11-20
  • Contact: Jie WEI E-mail:weijieding@163.com

Abstract:

As the COVID-19 has spreaded globally since last year, all countries suffered severely. China took active responses to the disease when it first appeared, and first-level responses to public health emergencies have been initiated across the country. However, for a long time, the government’s emergency medical supplies reserve couldn’t meet the huge demand after the outbreak. It exposed our country’s weaknesses that we are inexperienced in managing emergency medical supplies reserve. For now, there are three main problems. Fristly, the major department of the reserve is government, while society and enterprises rarely participate in. Secondly, there are few forms of reserves, most of them are physical reserves, and production capacity reserves takes a small portion. Thirdly, the enthusiasm of enterprises participating in normalized emergency medical supplies reserve is not high due to the lack of government incentives. Therefore, in order to improve our country’s emergency medical supplies reserve system, besides government’s own reserves, the government should also entrust enterprises to reserve both physical and production capacity. At the same time, government should provide subsidies to the agreement enterprises, in order to encourage them to keep the production lines, what kind of reserve form the agreement enterprise should choose and how government subsidies will affect their reserve decisions have become the urgent problems. This article focuses on agreement enterprises which provide emergency medical supplies reserve, supposing that government subsidizes their production capacity reserve. Aiming at maximizing the benefits of the agreement enterprises and considering the actual probability of the outbreak of the epidemic, a model of coordination between physical reserve and production capacity reserve of agreement enterprises is constructed and the government-led Stackelberg game theory is used to solve it. The optimal strategy of reserve in different situations is given based on the analysis about the impact of government subsidies, the probability of outbreaks, and agreed purchase prices on the optimal reserve decision of agreement enterprises. Finally, combining the realistic background, the conclusions are verified by calculation examples. The specific research results obtained are as follows. Fristly, the agreement enterprises will choose not to cooperate with government for its own interests when the probability of outbreaks or the amount of government subsidies is low. Secondly, the agreement enterprises will choose to cooperate with government when the probability of outbreaks is high, and they will decide whether to choose a single or a mixed reserve form in view of the combined influence of the agreed purchase price, the probability of outbreaks, and government subsidies. The problem of emergency medical supplies reserve of agreement enterprises is studied, and a scientific guidance and basis for the cooperation between government and enterprises is provided to carry out them. In the future, the government can be the main body of research to discuss its pricing decisions and subsidy strategies.

Key words: government subsidies, emergency medical supplies, physical reserves, production capacity reserves, probability of outbreak

CLC Number: