Abstract: In view of the low level of fresh-keeping efforts and “last kilometer service” efforts of the two-echelon supply chain consisting of a fresh product supplier and an online fresh product retailer in "pre-position warehouse mode", the reasons were explored from the perspective of fairness concern. By using the game theory method and establishing the Nash bargaining model, optimal decision-makings as well as the earnings and utility of the supply chain were analyzed and compared under different fairness concern conditions. The result indicates that the supplier's fairness concern can lower the online retailer's fresh-keeping efforts and the “last kilometer service” efforts. Moreover, fairness concerns of supply chain members are generally accompanied by an increase of their earnings ratio and the loss of the total supply chain utility. Finally, the efforts level of fresh-keeping and “last kilometer service” can both be improved, and the total utility of the supply chain can be optimized by the hybrid contract which emphasizes earnings and cost sharing. The result was verified by a numerical analysis.

Key words: pre-position warehouse mode, fairness concern, fresh-keeping efforts, “last kilometer service” efforts, hybrid contract