Pricing Decision For Closed-loop Supply Chain With Dominant Retailer Considering Fairness Concerns

With the rapid development of economy,increasing consumption of resources,and produce a large amount of waste,how to handle the waste effectively and realize economic sustainable development have important practical significance.Closed-loop supply chain management can effectively realize the recycle and reuse of the wastes,at present has become one of hot research problem at home and abroad.In this paper,differ from traditional rational "economic man" hypothesis,considering the decision-making behavior characteristics of the members of closed-loop supply chain system,from the leadership?recycling channels and pricing strategy of the closed-loop supply chain considering fairness concerns aspects for further research.With the continuous development of the retail industry in recent years and the characteristics of market which demand oriented,members of the supply chain corresponding leadership also has changed dramatically,in many industries,the dominant power in the market shift from manufacturers to retailers.Therefore,this paper mainly studies the pricing strategy of closed-loop supply chain dominated by retailers.On the basis of analysis and arrangement of existing research systems,in this paper,we introduce the fairness concerns behavior preference of member enterprises into the closed-loop supply chain system,by constructing the decision-makers' utility function considering the fairness concerns,study the fairness concerns behavior influence on member pricing and the whole profit of closed-loop supply chain.According to the above analysis,first built the pricing decision model of closed-loop supply chain in a single recycling channel with different members' fairness concerns,analyses the decision makers' fairness concerns behavior influence on members pricing and the optimal profit of the system of closed-loop supply chain;Furthermore,the pricing decision model of closed-loop supply chain is constructed in different recycling modes with the members' fairness concerns,study the optimal pricing decision and optimal recovery mode of closed-loop supply chain with the decision makers' fairness concerns.Finally,based on Stackelberg theory,utility theory,behavioral science management theory and nonlinear programming method,study the channel leadership,pricing decision and different recycling modes of closed-loop supply chain with decision makers' fairness concerns.Combining relevant data and using numerical simulation method,analyses the effect of decision makers' fairness concerns on the members pricing and the overall profit of the system of supply chain,the optimal pricing strategy and optimal recycling channel selection method of closed-loop supply chain dominated by retailers are given.Finally,taking the closed-loop supply chain of home appliance products as an example,with the fairness concerns of member enterprises,an empirical study on the pricing decision-making of closed-loop supply chain based on Suning as channel leader is carried out,the results indicate the rationality and feasibility of this study.