The Decision And Coordination Of Low Carbon Supply Chain With Fairness Concern

Fairness has been a hot topic in the research field of combination with supply chain management and the behavioral research of "bounded rationality",and a lot of experiments and theory researches have showed that fairness plays an important role in the decision and coordination of the supply chain.Besides,with the consciousness of environment and low carbon of the customers,more and more companies have changed to focus on the decreasing of carbon emission of themselves or of the whole supply chain and gradually extend the market of product with low carbon.What's more,decreasing low carbon emission and producing the low carbon product have change the form of cost of supply chain which has created new problems in the research of decision and coordination of supply chain.Based on these new changes in supply chain,this paper incorporates the factor of fairness concern into the supply chain with low carbon product and uses the methods and theories coming from game theory,economics,operation researching and so on to study the decision and coordination of this type of supply chain and design some contract,which will get some basic theories for the practice of company in the future.This paper focuses on the product the demand of which is influenced by the product price and the low carbon preference of customers and the dyadic supply chain with one manufacture and one retailer who is the leader in the low carbon supply chain and had a Stackelberg game with manufacture.Firstly,considering the decision makers in this type of supply chain are rational,making up of the decision model for supply chain,then this paper will use Nash Equilibrium to get the optimal solution,at the same time,design the contract of carbon emission decreasing cost sharing and analyzing the conditions and possibility of coordination for this supply chain.Then introducing the factor of fairness,using Nash bargain and break point to constitute the criteria of fairness,and only considering the manufacture with fairness concern,under this condition,this paper will study the changes of the decision and coordination of supply chain.Through the solution and analysis,it is found that when the supply chain is affected by the fairness concerns,the cost sharing contract alone can only increase the emission reduction level of the supply chain,but the supply chain should pay the cost of profit reduction.Therefore,we further study the condition and possibility of low carbon supply chain coordination when the government and the supply chain upstream and downstream enterprises jointly reduce emissions.Finally,we further describe the impact and nature of the supply chain performance and main parameters through numerical simulation analysis.At the end of the paper,the paper summarizes the achievements of the research,and points out the limitations of the research,and looks forward to the work that needs further research.