Research On The Impact Of Bidirectional Fairness Concern On Decision And Coordination Of Closed-loop Supply Chain

Since our country has taken the development of remanufacturing industry as an important part to promote the construction of ecologically-friendly enterprises,realize green recycling and low-carbon development and promote industrial upgrading.All sectors of society have attached great importance to the management of closed-loop supply chains in remanufacturing.There are two ways in which companies conduct remanufacturing activities: one is the company recycles and remanufactures itself,the other is recycled by a third party remanufacturer.When manufacturers license remanufacturing activities to remanufacturers,on the one hand,they can effectively maintain the market share of new products,on the other hand,they can also increase consumers' perceived value of new products.This shows that the manufacturer's remanufacturing activities through patent licensing not only can fulfill its obligation of recycling and remanufacturing,increase its social benefits,it can also maintain its market share of new products and increase its economic efficiency.Therefore,it is very important to introduce patent protection factors into the closed-loop supply chain.Therefore,it is necessary to further study the patent protection as a basic variable of the closed-loop supply chain.The traditional closed-loop supply chain research is mostly based on the absolute rationality of decision makers.A large number of game experiments in behavioral economics proved that decision makers are often not completely rational,and their psychological and behavioral factors will have a direct impact on their decision-making.Especially in activities involving the distribution of benefits,when they perceive being unfairly treated,they would sacrifice their own interests to harm the interests of others.Behavioral economics calls it as fairness concerns.Obviously,when there are fairness concerns in the system and not being taken seriously,the fairness concerns will directly harm the interests of the whole system.Therefore,a losed-loop supply chain model which consists of the manufacturer which as the leader,remanufacturer and retailer which as the follower is built in this article.In the context of the manufacturer's patent license to the remanufacturer for recycling and remanufacturing activities,build three different scenarios in which the manufacturer,the remanufacturer,and the retailer have directional fairness concerns.Study the impact of bidirectional fairness concerns by the manufacturer,the remanufacturer and the retailer on production strategies,system profit and system coordination in a closed-loop supply chain.Emphasis is placed on the impact of one-way fairness concerns of the manufacturer,the remanufacturer and the retailer on production strategies,system profit and system coordination in closed-loop supply chains.It aims to find a one-way fairness concerns behavior that has a more obvious impact on the closedloop supply chain strategy under various scenarios,so as to achieve targeted control.The results show that: When the manufacturer has bidirectional fairness concerns,the manufacturer's bidirectional fairness concerns behavior reduces product demand and system profit.Where,the manufacturer's horizontal fairness concerns has a greater impact on the demand for remanufactured products than its vertical fairness concerns,and the manufacturer's vertical fairness concerns has a greater impact on new product demand and system profit than its horizontal fairness concerns.When the remanufacturer has bidirectional fairness concerns,since the manufacturer considers the fairness concerns behavior of the remanufacturer,the remanufacturer's vertical fairness concerns has a greater impact on the demand of products and system profit than its horizontal fairness concerns;Science the manufacturer does not take into account the fairness concerns of the remanufacturer,the manufacturer's horizontal fairness concerns has a greater impact on the demand of products and system profit than its vertical fairness concerns.When the retailer has bidirectional fairness concerns,the retailer's bidirectional fairness concerns does not affect the demands of products and the system's profit science the manufacturer and the remanufacturer consider the retailer's fairness concerns.The retailer's bidirectional fairness concerns will reduce the demands of products and the system's profit science the manufacturer and the remanufacturer do not consider the retailer's fairness concerns.Where,the retailer's fairness concerns about the manufacturer impact on the demands of products and system profit is higher than its fairness concern to the remanufacturer.Under the bidirectional fairness concern behavior of manufacturers and remanufacturers and retailers,the revenue sharing-cost sharing contract can realize the coordination of closed-loop supply chain.