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Optimisation of reverse supply chain with used-product collection effort under collector’s fairness concerns

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  • Xiang Li
  • Xueqing Cui
  • Yongjian Li
  • Daqi Xu
  • Fangchao Xu

Abstract

Fairness has been regarded as a vital role in developing and sustaining benign channel cooperation relationships. One can exhibit either distributional fairness when comparing with upstream/downstream parties or peer-induced fairness when comparing with competitors located at the same stage of the supply chain. This paper examines distributional fairness in a simple reverse supply chain (RSC) consisting of one collector and one remanufacturer, and then extends to the case of one remanufacturer and two collectors to investigate the case of peer-induced fairness. Adopting the game-theory analysis framework, we explore the optimal decisions of transfer price and collection effort in the fair-minded RSC and discuss the impacts of fairness concern. It is shown that under some condition channel coordination can be achieved by a simple contract of constant transfer price with distributional fairness concern from the collector, but this is not true when the collectors are peer-induced fair-minded.

Suggested Citation

  • Xiang Li & Xueqing Cui & Yongjian Li & Daqi Xu & Fangchao Xu, 2021. "Optimisation of reverse supply chain with used-product collection effort under collector’s fairness concerns," International Journal of Production Research, Taylor & Francis Journals, vol. 59(2), pages 652-663, January.
    • Handle: RePEc:taf:tprsxx:v:59:y:2021:i:2:p:652-663
    DOI: 10.1080/00207543.2019.1702229
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    Cited by:

    1. Peng Xing & Xiangru Zhao & Mingxing Wang, 2022. "The Optimal Combination between Recycling Channel and Logistics Service Outsourcing in a Closed-Loop Supply Chain Considering Consumers’ Environmental Awareness," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    2. Xiaogang Ma & Chunyu Bao & Jizi Li & Wandong Lou, 2022. "The impact of dual fairness concerns on bargaining game and its dynamic system stability," Annals of Operations Research, Springer, vol. 318(1), pages 357-382, November.
    3. Tang, Ruihong & Yang, Lei & Ji, Jingna, 2023. "Impacts of fairness concerns on financing equilibrium in a low-carbon supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).

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