Research On Recycling Decision With Fairness Concern In The Closed-loop Supply Chain

As environmental pollution and resources shortage is becoming an increasinglyperilous problem, governments and enterprises are eager to recycle and reuse of wasteproducts, which can not only reduce the waste pollution to the environment, but also savecost, increase profits and enhance competitiveness. Decisions of the waste productrecycling, remanufacturing, sales and profit distribution in the closed-loop supply chainbecome the hot topic for the enterprise managers and scholars.Scholars has done lots of research jobs in the fields of closed-loop supply chainchannel selection, recycling products pricing, members of the enterprise profit allocationand coordination,which has formed a certain theoretical framework.The studies showedthat enterprise profit allocation and recycling efficiency in the the closed-loop supply chainmainly depends on the channel structure, the degree of node enterprises dominant positionand competition, cost savings for old product and so on.With in-depth study, it is found thatfairness in the supply chain system affect the performance of the supply chainmanagement.Profit distribution between the node enterprises will trigger fairness concernstendency. Recycling and remanufacturing increase the uncertainty and instability of supplychain decisions,while the corporate profits is redistributed.Therefore, decisions in theclosed-loop supply chain become the new problem for policy makers to think.The paper introduced fairness concern to the closed-loop supply chain.Firstly,juststudy the retailer’s fairness concerns which based on differential pricing of new productsand remanufactured products, the paper examed decisions under two differernt situationsfor the manufacturer whether consider the retailer’s behavior of fairness concern ornot,compared them to neutral situation,discussed the impacts of the retailer’s fairnessconcerns on pricing and profits.Closed-loop supply chain was coordinated by quantitydiscount contract. In the meantime, the paper extend further research,that research theclosed-loop supply-chain strategy with the fairness preference policy makers. It analyzedthe decision-making strategy of supply-chain members under the two situations: onlymanufacturer care about the fairness or only retailer concern about the equity, andcompared the influence of the preference coefficient to recovery rate and system profit ofsupply-chain under the two different concern subjects. And a Two-Part Tariff contract tocoordinate pricing strategies in pursuit of the supply chain cooperation is proposed.