Research On Pricing Strategy For Recycling Of Waste Products In Closed-loop Supply Chain Considering Fairness Concern

Recycling has become an important way for enterprises to reduce costs and fulfill their social responsibilities.The purpose of this paper is to explore the impact of fairness concern behavior on dynamic closed-loop supply chain equilibrium strategy and waste product recycling in the context of different bodies responsible for recycling waste products.Is studied by a single manufacturer and single retailer or by a single manufacturer and single retailer and a single third-party recycler of the dynamic closed-loop supply chain system with cooperative relations for a long time,taking into account the supply chain members fairness concerns behavior influence on product pricing and waste recycling,from the dynamic point of view of three different main body responsible for recycling of waste products to analyze differential game model.First,in view of the manufacturer or the retailer is responsible for the recycling of waste products the optimal decision of the supply chain members,respectively from no fairness concern,fairness concern of the manufacturer and the retailer fairness concern three scenarios using continuous time dynamic planning theory to construct the manufacturers and retailers of HJB(Hamilton-Jacobi-Bellman)equation,the comparative analysis of different subject concerns of fairness wholesale prices,product pricing,recycling efforts,corporate profits equilibrium values,the numerical simulation map variable trajectory,and the single and double parameters sensitivity analysis,It can provide a reference for the cooperative decision among enterprises in dynamic closed-loop supply chain with fairness concern behavior.Secondly,in view of the third party is responsible to recycle waste products optimal pricing problem of supply chain members,respectively from no fairness concern,retailers and third party fairness concern three scenarios to build utility function and the HJB equation of the supply chain members,and the related parameters sensitivity analysis and solved by a third-party responsible for waste product recycling the equilibrium strategies of the supply chain members.The results show that:1)Under the circumstance that different subjects are responsible for recycling waste products,the manufacturer’s balanced profit is always better than the retailer’s balanced profit,and the third party’s profit is the lowest.2)The profit of manufacturer is the highest under the model of no fairness concern and the lowest under the model of retailer fairness concern.Retailer’s optimal profit is the highest under retailer’s fairness concern model.The profit of the third party is the highest in the model without fairness concern and the lowest in the model without fairness concern.