JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2018, Vol. 53 ›› Issue (9): 69-82.doi: 10.6040/j.issn.1671-9352.0.2018.033

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Equilibrium decisions of a two-layer supply chain network considering retailers horizontal fairness

  

  1. School of Business, Qingdao University, Qingdao 266071, Shandong, China
  • Received:2018-01-23 Online:2018-09-20 Published:2018-09-10

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Abstract: We extended the vertical fairness research on a supply chain with one manufacturer and one retailer, and considered the horizontal fairness preference in a two-layer supply chain network consisted by an upper tier for a single manufacturer and a lower tier for multiple retailers and demand markets. The retailer chooses his decision based on the horizontal fairness preference comparing the profit of other retailers. Considering retailers horizontal fairness preference, the Nash game model of the retailers and the Stackelberg-Nash game model of the two-layer supply chain network were constructed. The optimal decisions of a two-layer supply chain network were obtained by the penalty function algorithm. The numerical results show that the horizontal fairness preference among retailers lead to different changes in the decisions of the supply chain members, and the maximum profit of manufacturer and the maximum utility of retailers are lower than those of neutral retailers. Finally, some advices are provided to the supply chain members to deal with the horizontal fairness preference.

Key words: horizontal fairness, equilibrium decision, penalty function algorithm

CLC Number: 

  • F274
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