Buy-back Contract Coordination Incorporating Fairness

This paper considering the member’s decision-making sequence of the supply chain when we research buy-back contract contains one retailer and one supplier. Also we introduce fairness this research. Through formed models and analysis data to study the influences of fairness to the coordination of buy-back contract and the optimal decisions made by the member of the supply chain. This paper including three main parts:First part, research buy-back contract incorporating fairness. Through formed models of utility functions and analyze data to study the influence of fairness to the coordination of the buy-back contract and the optimal decisions made by the supply chain members. Research shows that the coordination of buy-back and the optimal decision made by the supply chain can’t be influenced by fairness. But the utility will be influenced by fairness.Second part, research buy-back contract with a dominant supplier incorporating fairness. Through formed models of utility functions and analyze data to study the influence of fairness to the coordination of the buy-back contract with a dominant supplier and the optimal decisions made by the supply chain members. Research shows that the coordination of buy-back with a dominant supplier can’t be influenced by fairness. But the optimal decision made by the dominant supplier will be influenced by fairness.The last part, research buy-back contract with a dominant retailer incorporating fairness. Through formed models of utility functions and analyze data to study the influence of fairness to the coordination of the buy-back contract with a dominant retailer and the optimal decisions made by the supply chain members. Research shows that the coordination of buy-back with a dominant retailer can’t be influenced by fairness. But the optimal decisions made by the supply chain members will be influenced by fairness.This investigation considering the supply chain member’s fairness when we study buy-back contract. The conclusions not only can enrich the theoretical research, but also can be used to guide the practice. Therefore, our study has important theoretical significance and practical significance.