Research On The Operation Of Closed-Loop Supply Chain System With Fairness Concerns

In recent years,problems such as shortage of natural resources and environmental pollution have become increasingly serious.As an effective way to realize circular economy development and efficient use of resources,remanufacturing has attracted wide attention from all walks of life.Most traditional researches on closed-loop supply chain are based on the“economic man”hypothesis of decision makers.In reality,decision-makers not only pay attention to their benefits but also follow with interest in others'benefits.In addition,the study extends the static research of the past time to dynamic research,considering the dynamic process of product recovery as a function of time.In view of this background,the game theoretic model consisting of one leading manufacturer and a following retailer was constructed by using different research methods such as case analysis,evolutionary game and differential strategy,then analyzing the impact of supply chain operation with members' fairness concerns.The main contents of the paper include:(1)Analyzed the information of the members of the closed-loop supply chain system under the symmetry condition of the member's fair concern information,and the influence of the information structure of the closed-loop supply chain system on the optimal decision of the closed-loop supply chain.At the same time,we also studied the evolution of the long-term stability strategy of the information structure model of the members with the lowest benefit in the supply chain.(2)Under the model of manufacturer fairness neutrality and retailer fair concern,three differential game models where the manufacturer concerns about retailer's fairness,the manufacturer pays no attention to retailer's fairness and centralized decision-making are constructed,and the optimal feedback equilibrium strategy of supply chain members is obtained by using the optimal control theory.And the hybrid contract of revenue and cost sharing is further adopted to improve the supply chain operation under considering fairness concerns of retailer.Analytical results indicate that that the appropriate information structure in a single-period context is contingent on channel preferences for supply chain effectiveness and environmental benefits.However,no matter what benefits are considered,the benefits of the scenario when they fairly concerned is the lowest.And the hybrid evolutionary stable strategies in the multi-period environment are pertinent to two scenarios,both members are fairness concerned,or only one enterprise member shows fairness concerns.In addition to that realizing Pareto improvement of members' revenues and maximizing overall revenue when the revenue sharing coefficient is within a certain range.These conclusions provide reference for the enterprise cooperation and sustainable development of the remanufacturing closed-loop supply chain.