Highlights This paper considers fairness in coordinating a closed-loop supply chain. Based on the classic Shapley value, we propose an weighted coordination approach. Consider a supply chain consisting a manufacturer, a retailer and a remanufacturer. Given fairness concerns, we focus on how to allocate the centralized-setting profit. We prove that our model conditionally outperforms the classic Shapley value.

    Abstract This paper considers a closed-loop supply chain (CLSC) structure in which a manufacturer allows a retailer and a third-party remanufacturer to sell and remanufacture his products, respectively. Given the retailer’s distributional fairness concerns, we investigate the optimal/equilibrium decisions and profits under five non-cooperative and cooperative game models, and focus on how to allocate maximum profit in a centralized setting. Based on the classic Shapley value, we propose an innovative weighted allocation approach-namely, the variable-weighted Shapley value-to coordinate this CLSC. Numerical studies demonstrate that when remanufactured products are lowly accepted by consumers, our model outperforms the classic Shapley value.


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    Title :

    Coordinating a closed-loop supply chain with fairness concerns through variable-weighted Shapley values


    Contributors:
    Zheng, Xiao-Xue (author) / Li, Deng-Feng (author) / Liu, Zhi (author) / Jia, Fu (author) / Sheu, Jiuh-Biing (author)


    Publication date :

    2019-04-22


    Size :

    27 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English





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