Research On Closed-Loop Supply Chain Pricing Considering Retailer’S Fairness Concerns Under Bidiretional Cooperative Advertising

As a key component of new energy vehicles,the supporting quantity of power batteries is also growing rapidly.The retirement trend of power batteries is approaching.If they are not recycled and remanufactured,it will not only cause serious pollution to the environment,but also lead to resource waste.At present,the replacement,sales,recycling,and remanufacturing of power batteries in China are still in the initial stage,and the promotion efforts to consumers are insufficient.At the same time,the marketing and recycling strategies adopted by different power battery retailers in the market also vary.This article takes the new energy vehicle power battery manufacturer G Company as an example to construct a closed-loop supply chain model led by the manufacturer under bidirectional cooperative advertising.Different retailers will respond differently to the manufacturer’s cooperative advertising strategy,and retailers participating in cooperative advertising will have fairness concerns due to unequal status and uneven profit distribution.Based on this,this study investigates the pricing decision problem of bidirectional cooperative advertising considering retailer’s fairness concerns.The main research works are as follow:Research on closed-loop supply chain pricing considering retailer’s fairness concerns under bidirectional cooperative advertising.Due to the fact that most studies often only rely on forward cooperative advertising to promote sales,but rarely consider introducing advertising cooperation in reverse supply chains,and there are few studies that consider retailer’s fairness concerns in this situation.Therefore,studying the closed-loop supply chain pricing problem that considers retailer’s fairness concerns under bidirectional cooperative advertising has certain value and novelty.In the case of heterogeneous retailers,manufacturers and some retailers respectively carry out forward cooperative advertising to promote product sales,and reverse cooperative advertising to promote waste product recycling,while considering the fairness concerns of retailers in the advertising cooperation process.The closed-loop supply chain pricing model of heterogeneous retailers under centralized decision-making and decentralized decision-making is constructed respectively.The model includes two retailers,one of which carries out cooperative advertising with the manufacturer,and the other does not participate in cooperative advertising.The product demand,recovery,pricing and supply chain profit are analyzed and compared with fairness concerns,and the retailer’s competitive strength is introduced in the case of reverse advertising cooperation.Then,a Revenueand-Expense-Sharing(RES)contract is designed for the closed-loop supply chain model,and the contract parameters that enable the Decentralized decision-making pricing model to coordinate the closed-loop supply chain are obtained.Finally,the new energy vehicle power battery manufacturer G company and two representative retailers that it has long-term cooperation with are selected as case studies to verify the pricing model conclusions.The research results show that both forward and reverse cooperative advertising can have a forward impact on the closed-loop supply chain to expand sales volume and recycling volume.Retailers can formulate corresponding recycling Pricing according to consumers’ acceptance of advertising,price sensitivity and competition intensity,but retailer’s fairness concerns will damage the profits of the supply chain system,so manufacturers need to pay attention to the fairness concern of retailers participating in cooperative advertising.And the closed-loop supply chain can be coordinated through the Revenue-and-Expense-Sharing(RES)contract,so that the profit of the closed-loop supply chain under decentralized decision-making can reach the same level under centralized decision-making.At the same time,reasonable allocation of the proportion of forward and reverse cooperative advertising investment can further expand the profits of the supply chain system.