Coordination contract of supply chain under manufacturers fairness concern
Considering a dyadic supply chain under the manufacturer's fairness concern,a non-cooperative game model was constructed to investigate the coordination function of wholesale price contract and revenue sharing contract.The game equilibrium was solved by backward induction.It was found that the wholesale price contract was always unable to coordinate the supply chain under the manufacturer's fairness concern,which was different from the result under retailer's fairness concern.The manufacturer would leverage the first-mover advantage to ensure an advanta-geous inequality(the manufacturer profit is always greater than the retailer's).When the potential demand was large and the manufacturer's disutility from advantageous inequity was strong,the revenue sharing contract could achieve supply chain coordination if the sharing rate was 1/2 and the manufacturer supplied at the cost price.
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