Decision research of closed-loop supply chain considering consumer preference and fairness concern

Based on consumer preference and consumer fairness concern, the single-channel and dual-channel Closed-Loop Supply Chain (CLSC) decision-making models were established. The equilibrium results under different situations were analyzed, and the influences of consumers' acceptance of remanufactured products and fairness concern on members' decisions and profits were discussed. The research showed that regardless of single-channel or dual-channel CLSC, the retail price and the retailer's profit were reduced always made by consumers' fairness concern, and were decreased progressively with the increasing of fairness coefficient, which indicated that consumers' fairness concern beneficially affected the consumers and adversely affected the retailer. The improvement of remanufactured products' acceptance made the retail price, the recovery rate and demand increased, which was conducive to the development of circular economy. Whether consumers were concerned about fairness or not, the price was higher and the demand was lower in dual-channel compared with single-channel CLSC. Furthermore, consumers' acceptance of remanufactured products and their aversion to unfair trade would affect the profits of enterprises. Under certain conditions, retailer benefited from manufacturers' investment on remanufacturing. The channel strategy of the manufacturer depended on consumers' preference and fairness concern. © 2022 CIMS. All rights reserved.