Research On Pricing Strategy Of Dual-Channel Reverse Supply Chain Considering Fairness Preference

“Garbage is the wealth of misplaced location.”Technological advances and product continual changes have made resource shortages and environmental pollution problems even more prominent.In recent years,Chinese recycling companies have developed a dual-channel reverse supply chain model that coexists online and offline recycling channels based on evolving Internet technologies.Compared with offline channels,online recycling channels have significant advantages in terms of privacy protection,logistics services and recycling rate,which can effectively reduce the amount of recycling while reducing the pollution discharge from the recycling process.The academic community has also studied pricing issues that consider consumer preferences,regional differences,and recycling quality in a dual-channel reverse supply chain.However,there is little research on how to make scientifically decision-making on the price and service level of enterprises in the dual-channel reverse supply chain under the fair preference behavior of recycling enterprises.This paper takes recycling enterprises as the research object,and comprehensively uses game theory and supply chain management theory to study the pricing and service level decision-making of recycling enterprises considering fair preference behavior.Firstly,the relevant basic theories and literatures are sorted out,and the related concepts of reverse supply chain,dual-channel reverse supply chain and fairness preference are systematically summarized.Then,based on the traditional recycling mode,dual-channel recycling mode,and the dual-channel recycling model of the third-party network recycling platform,the three-channel reverse-supply chain structure is constructed,and the price and service level models are constructed respectively.The Stackelberg game method is used to solve the model.Outsourcing companies' optimal pricing and service level decisions and maximum profit.Finally,the conclusion is verified by data simulation.The results show that:(1)When the supply chain members only have one-way fair preference,the fair preference preference of the third-party recyclers will increase their bargaining power and channel power in the supply chain,thus bringing their own profits up,but the recycling center Fair preferences will reduce the amount of supply chain recycling,resulting in lower profits,and environmental pollution and waste of resources.(2)When supply chain members have two-way fairness preferences,the horizontal fairness preference of third-party recyclers and online network recycling platforms will not only lead to lower profits,but also reduce the profits of supply chain members at the same level.The center's profits will rise.It means that the horizontal fairness preference does not bring benefits to itself.Instead,it causes itself to suffer losses and produces the result of “successful competition”.But vertical fairness preferences can lead to an increase in their own profits while reducing the profits of other members of the supply chain.(3)The recycling center's attention to the fair preference of offline third-party recyclers will lead to an increase in the profit of the network recycling center and reduce its own profits.Furthermore,the recycling center's focus on the fairness of the network recycling center will lead to an increase in the profits of offline third-party recyclers and reduce their own profits.However,when the recycling center has strong fair preference concerns for offline third-party recyclers and network recycling platforms,the recycling center profits can be improved.(4)One-way fairness preferences and horizontal fairness preferences of offline third-party recyclers will lead to an increase in their own profits,and vertical fairness preferences will lead to a decline in profits.The horizontal fairness preference of the online network recycling platform will lead to an increase in its own profits,while the vertical is the opposite.For recycling centers,their focus on the fairness of the other two parties will lead to a decline in their own profits.The traditional recycling model constructed by the Institute,the dual-channel model of the self-built network recycling channel of the recycling center,the three-channel revenue model of the third-party network recycling platform,and the optimal pricing and service level strategy are considered for the recycling enterprise.Supply chain related decisions at the time of preference have reference value,which enhances the benefits of the entire supply chain and members.