Modeling closed-loop supply chain with dominant retailer considering fairness concern

2016 ◽  
Author(s):  
Fengmin Yao ◽  
Shan Liu
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Closed Loop Supply Chain ◽  
Dominant Retailer ◽  
Fairness Concern

scholarly journals An Efficient Approach for Coordination of Dual-Channel Closed-Loop Supply Chain Management

2018 ◽  
Vol 10 (10) ◽  
pp. 3433 ◽  
Author(s):  
Muhammad Arshad ◽  
Qazi Khalid ◽  
Jaime Lloret ◽  
Antonio Leon
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Third Party ◽  
Equilibrium Strategy ◽  
Recycling Rate ◽  
Closed Loop Supply Chain ◽  
Dual Channel ◽  
Fairness Concern ◽  
The Impact

In this paper, a closed-loop supply chain composed of dual-channel retailers and manufacturers, a dynamic game model under the direct recovery, and an entrusted third-party recycling mode of the manufacturer is constructed. The impact of horizontal fairness concern behavior is introduced on the pricing strategies and utility of decision makers under different recycling models. The equilibrium strategy at fair neutrality is used as a reference to compare offline retails sales. Research shows that in the closed-loop supply chain of dual-channel sales, whether in the case of fair neutrality or horizontal fairness concerns, the manufacturer’s direct recycling model is superior to the entrusted third-party recycling, and the third-party recycling model is transferred by the manufacturer. In the direct recycling model, the horizontal fairness concern of offline retailers makes two retailers in the positive supply chain compete to lower the retail price in order to increase market share. Manufacturers will lower the wholesale price to encourage competition, and the price will be the horizontal fairness concern coefficient, which is negatively correlated. In the reverse supply chain, manufacturers increase the recycling rate of used products. This pricing strategy increases the utility of manufacturers and the entire supply chain system compared to fair neutral conditions, while two retailers receive diminished returns. Manufacturers, as channel managers to encourage retailers to compete for price cuts, can be coordinated through a three-way revenue sharing contract to achieve Pareto optimality.

scholarly journals Pricing strategy of closed loop supply chain considering different CSR investment modes

2021 ◽  
Vol 336 ◽  
pp. 09005
Author(s):  
Yingluo Yan ◽  
Fengmin Yao
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Closed Loop ◽  
Competitive Advantages ◽  
Closed Loop Supply Chain ◽  
Waste Products ◽  
Pricing Decision ◽  
Decision Making Problem ◽  
Dominant Retailer ◽  
Corporate Social

More and more companies are beginning to realize that incorporating corporate social responsibility (CSR) and sustainable development into supply chain strategies and operations can bring them more competitive advantages. In the case that the manufacturer or retailer performs CSR through profit donation, the pricing decision-making problem of closed-loop supply chain (CLSC) with dominant retailer under different CSR investment modes is studied. The decision-making models of CLSC under the manufacturer’s and retailer’s CSR investment mode are constructed respectively. The conditions for enterprises to fulfil CSR through profit donation and the influence of different CSR investment modes on the pricing of new products and recycling of waste products are discussed. The research shows that no matter what kind of CSR investment mode, only when the consumers are more sensitive to the CSR investment of enterprises, the manufacturer and retailer will fulfil the CSR through profit donation. The CSR investment mode of the manufacturer is more beneficial to consumers, environment, CLSC members and whole system. No matter whether the dominant retailer carries out CSR investment or not, she always obtains more channel profits than the manufacturer.

scholarly journals A Stochastic Differential Game in the Closed-Loop Supply Chain with Third-Party Collecting and Fairness Concerns

2019 ◽  
Vol 11 (8) ◽  
pp. 2241 ◽  
Author(s):  
Jianmin Xiao ◽  
Zongsheng Huang
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Return Rate ◽  
Third Party ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
The Third ◽  
Fairness Concerns ◽  
The Third Party ◽  
Fairness Concern

This paper investigates the optimal return control problem in a closed-loop supply chain consisted of one manufacturer, one retailer, and one third-party collector, in the presence of stochastic return disturbance and fairness concern of followers. We formulate the stochastic differential game-theoretic models and resolve the feedback Stackelberg equilibriums without and with fairness concern. We also derive the evolutionary paths of the stochastic return rate and the value functions of the supply chain members under the optimal control strategies. We find that the feedback equilibrium exists only under a specific condition, and the expectation and variance of the return rate both approach the stable state for a specific closed-loop supply chain system. We further discussed the impact of fairness concerns on the supply chain system. The manufacturer would shift profit to the retailer by lowering the wholesale price, and the stable expected return rate will be lower in the supply chain with fairness concerns, as the third party will have less incentive to collect used products, considering unfairness. The manufacturer should set a higher transfer subsidy to incentivize the third party to collect when the third party is concerned with fairness.

scholarly journals Stochastic Differential Game in the Closed-Loop Supply Chain with Fairness Concern Retailer

2020 ◽  
Vol 12 (8) ◽  
pp. 3289 ◽  
Author(s):  
Zongsheng Huang
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Control Strategies ◽  
Stable State ◽  
Return Rate ◽  
Expected Return ◽  
Closed Loop Supply Chain ◽  
Stochastic Disturbance ◽  
Disturbance Intensity ◽  
Fairness Concern

This paper addresses the stochastic used-product return problem in a closed-loop supply chain consisting of one manufacturer and one retailer concerned with fairness. We resolve the equilibrium feedback control strategies with no fairness concern retailer, gap fairness concern retailer, and self-due fairness concern retailer. We find only under a specific condition, the feedback Markov equilibrium exists, and the expected return rate would approach to the stable state, regardless of the fairness type the retailer is. The equilibrium prices are decreasing over the return rate, and the equilibrium collecting control strategy is increasing over the return rate. The increasing of stochastic disturbance intensity can be beneficial to the supply chain members. The manufacturer should shift profit to the retailer since the retailer is fairness concern. By the comparison analysis, we find the gap fairness concern retailer is more aggressive, while the self-due fairness concern retailer is more reasonable for both the manufacturer and the retailer. Furthermore, we design a hybrid coordinate contract for the manufacturer to coordinate with the retailer.

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