Decision models of closed-loop supply chain with different recycling channels considering manufacturer's fairness concerns

To research the optimal decision problems of closed-loop supply chain composed of a dominant retailer and a manufacturer with fairness concerns. Under two different recycling channels of manufacturer and retailer, the effect of manufacturer's fairness concerns to the pricing of new products and the recycling rate of waste products were analyzed, the profits of members and whole closed-supply chain system were compared. It shows that the behavior of manufacturers' fairness concerns will lead to the increase of wholesale price and retail price of new products, but the decrease of recycling rate of waste products. The enhancement of manufacturer's fairness concerns is beneficial to maximize his own profit and utility, but unbeneficial to retailer and whole system. When the manufacturer is directly responsible for the recycling, which may not be beneficial to the members and whole system, however, when the dominant retailer is responsible for the recycling, which is always favorable to oneself.