Pricing and Coordination of the Extended Warranty Service Supply Chain that Considers Fairness Concerns
DOI:
https://doi.org/10.54097/fbem.v10i2.10688Keywords:
Extended warranty service, Dual channels, Pricing, Supply chain coordination, Equity concerns.Abstract
For the product dual-channel supply chain composed of one manufacturer and one retailer with fairness concerns, considering that the decision of products and extended warranty services in the supply chain is affected by the fairness concern behavior of retailers, the Stackelberg game method was used to establish the profit decision model of manufacturers and retailers, solved the product price, extended warranty service price and profit of each member of the supply chain during centralized and decentralized decision-making, and discussed the impact of retailer fairness concern on the optimal decision and profit of supply chain members. The results showed that with the increase of retailers' fairness concern coefficient, the wholesale price of products and the price of extended warranty service decrease, and the price of direct sales channel and retail channel price of products increase. Retailers' profits increase, manufacturers' profits, and the total profits of supply chain systems decrease.
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