Abstract:  Fairness concern is introduced into a closed-loop supply-chain and supply-chain strategy for such a supply chain is studied. The decisionmaking strategy of supplychain members is analyzed under two situations: only the manufacturer cares about the fairness and only the retailer is concerned about the equity. The influence of the preference coefficient on the recovery rate and system profit of supplychain under the two different concern subjects is compared. Studies show that the fairness preference of the manufacturer improves both the wholesale and retail price to reduce the recovery rate and profit on both sides. The fairness preference of the retailer reduces the wholesale price, retail price, and the recovery rate, but improves its own profit. At the same time, it is found that decision makers cannot blindly pursue fairness, which may lead to failure of the supply chain and loss of social welfare.

Key words:  closed-loop supply chain, fairness concern, supply chain decision