An Optimal Decision Research on Closed-loop Supply Chain Considering Retailer's Service and Fairness Concern

Abstract

Abstract:

This paper, aiming at a closed-loop supply chain (CLSC) consisting of one single manufacturer and one single retailer and based on the government replacement-subsidy policy, constructs CLSC models with and without the service improving and the fairness concern. Then the impact of retailer's fairness concern and service quality on the optimal decision and profits of the four CLSC models are discussed. The research shows that:(1) The service improving of the remanufactured goods will improve the market share of the remanufactured product, but also increase the total sales volume of the products; (2) As the service quality grows, the profit of manufacturers will also rise, and the retailers' profits and total profits of the whole closed-loop supply chain system will increaseHYPERLINK"javascript:;" atHYPERLINK"javascript:;" firstHYPERLINK"javascript:;" andHYPERLINK"javascript:;" thenHYPERLINK"javascript:;" decreaseHYPERLINK"javascript:;"; (3) The fairness concern of the retailers won't influence the customers' market, but will lower the wholesale prices of new and remanufactured products; (4) The retailer's fairness concern behavior will not affect the total profit of the closed-loop supply chain, but will affect the profit distribution in the closed-loop supply chain.

Key words: service quality, fairness concern, closed-loop supply chain, replacement-subsidy

Li Xinran, Wang Qi. An Optimal Decision Research on Closed-loop Supply Chain Considering Retailer's Service and Fairness Concern[J]. , 2019, 31(4): 228-239.

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