Pricing and Service Decisions in a Supply Chain with Fairness Reference

摘要

This paper considers the pricing and retail servicelevel decisions between one manufacturer and one retailer in atwo stage supply chain. Three supply chain models includingcentralized decision-making without fairness preference,decentralized decision-making without fairness preference anddecentralized decision-making with fairness preference areproposed, and their optimal pricing and retail service levelstrategies are also derived. Finally, the results of the proposedmodels are analyzed via a numerical example. It is found that,the service level and the utility of supply chain system in thecentralized supply are higher than those in the decentralizedsupply chain when the manufacturer is fairness neural, thewholesale price in the decentralized supply with fairnesspreference is higher than that without fairness concern, andthe manufacturer’s fairness preference is not only harmful tothe utilities of the retailer and supply chain system, but alsoharmful to herself utility.