Industrial Engineering Journal ›› 2014, Vol. 17 ›› Issue (4): 63-69.

• articles • Previous Articles     Next Articles

Effects of Fairness Concerns on Supply Chain Coordination and Contract Design

  


  1. (College of Management and Economics, Tianjin University, Tianjin 300072, China)
  • Online:2014-08-30 Published:2014-10-17

Abstract:  Incorporating fairness concerns into supply chain management is an important research direction to behavior operation management. Fairness concerns are divided into altruism preference and egoism preference, and the impact of different fairness concerns on supply chain coordination of wholesale price contract and side-payment self-enforcing contract is studied. And it shows that although supply chain cannot coordinate when the retailer seeks altruism, it will help its egoism and make its optimal decision much closer to the system; when the retailer seeks egoism, it will do harm to both its altruism and egoism, getting its optimal decision further away from the system. A numerical example is given to verify the effectiveness of the conclusion. What’s more, it also shows that fairness concerns are not related to the coefficients of the sidepayment function.

Key words:  wholesale price contract, supply chain coordination, fairness concerns, side-payment self-enforcing contract