Research On Garment Industry Of Supply Chain Contract Considering Fairness Concerns

The development of e-commerce and the emergence of online shopping platforms has promoted the rapid development of China’s garment industry,with small and medium-sized garment enterprises and online Taobao stores springing up,meeting the diversified and personalized needs of China’s garment industry and improving people’s living standards and happiness index.At the same time,a series of problems have arisen,such as overall overcapacity and oversupply in the garment industry;clothing tends to homogenize,plagiarism phenomenon is common;supply chain management backward.How to focus on the quality of the garment industry while achieving rapid development is a matter of public concern.Nowadays,China has started the 14 th Five-Year Plan period,promoting the transformation of textile and garment industry to digitalization,intelligence and informationization,extending the industrial chain,continuously empowering and upgrading,and achieving green and sustainable development.Therefore,this paper systematically understands the current situation of the supply chain of the garment industry from the perspective of garment enterprises,deeply explores the impact of buyback contracts on the supply chain of the garment industry,and analyzes the supply chain coordination of the garment industry from two levels of fairness and neutrality and fairness concerns,and puts forward feasible suggestions for the supply chain management of garment enterprises.To begin,we examined the current state of supply chain management in the garment industry,built a supply chain buyback contract model,analyzed the profit function among supply chain members at the fair-neutral level,compared the profit gap between manufacturers and retailers from two perspectives: centralized and decentralized decision making,and investigate the relationship between buyback price and order quantity,wholesale price,and residual value.The study shows that when the wholesale price and buyback price meet certain conditions,the profit of centralized decision is greater than that of decentralized decision,and the buyback contract can cause the supply chain to reach a coordinated state.Second,based on the buyback contract model,the absolute fairness concern behaviour is introduced according to the characteristics of the garment supply chain to investigate its effects on supply chain member firms and total utility of the supply chain,and the case is analyzed and graphical simulation is performed.The study shows that when only the retailer is concerned fairly,it is detrimental to the retailer,the manufacturer and the total supply chain utility increase;when only the manufacturer is concerned fairly,it is beneficial to its own utility increase,but detrimental to the retailer’s utility increase;when both are concerned fairly,the total supply chain utility changes more.Finally,fairness is depicted from various angles by introducing Nash bargaining fairness concern behavior and investigating its differences and effects on supply chain decisions and utilities based on the buyback contract model.The study shows that the retailer’s fairness concern parameter is inversely proportional to the retailer’s utility and inversely proportional to the total supply chain utility;the manufacturer’s fairness concern parameter is inversely proportional to the manufacturer’s utility and inversely proportional to the total supply chain utility.when only one party exhibits Nash bargaining fairness concern behavior,the total supply chain utility is lower than the total supply chain profit under fairness neutrality;when both parties exhibit Nash bargaining fairness concern behavior,the total supply chain utility changes,but the buyback contract can still coordinate the supply chain.