@article{10.11648/j.ijefm.20221006.18,
  author = {Yuming Xiao},
  title = {Analysis of the Relationship Between Efficiency and Fairness in a Supply Chain},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {10},
  number = {6},
  pages = {368-376},
  doi = {10.11648/j.ijefm.20221006.18},
  url = {https://doi.org/10.11648/j.ijefm.20221006.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20221006.18},
  abstract = {In addition to efficiency, supply chain members’ fairness concerns cannot be ignored in supply chain management. Without certain fairness, the supply chain is likely to be unstable. This paper aims to analyze the relationship between fairness and efficiency in a supply chain through an incentive contract with revenue sharing. When determining contract parameters, the contract designer (supplier) should not only focus on her own interests, but should also consider the fairness of the distribution of the supply chain profits. In this model, the fairness concerns of the retailer are reflected with a profit distribution fairness constraint. A numerical example shows that the retailer’s fairness concerns have an important impact on the efficiency of the supply chain and the distribution of supply chain profits. The supply chain’s and the retailer’s profits increase with the retailer’s fairness concerns, whereas the supplier’s profit decreases with the retailer’s fairness concerns. In both cases where the profit distribution of the supply chain is very fair and unfair, respectively, the efficiency of the supply chain may be very high. But the second situation will cause retailer dissatisfaction. This will affect the stable operation of the supply chain, and also will have a negative influence on the supplier. Therefore, the supplier should pay attention to the retailer’s fairness concerns in designing the incentive contract.},
 year = {2022}
}

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TY  - JOUR
T1  - Analysis of the Relationship Between Efficiency and Fairness in a Supply Chain
AU  - Yuming Xiao
Y1  - 2022/11/29
PY  - 2022
N1  - https://doi.org/10.11648/j.ijefm.20221006.18
DO  - 10.11648/j.ijefm.20221006.18
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 368
EP  - 376
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20221006.18
AB  - In addition to efficiency, supply chain members’ fairness concerns cannot be ignored in supply chain management. Without certain fairness, the supply chain is likely to be unstable. This paper aims to analyze the relationship between fairness and efficiency in a supply chain through an incentive contract with revenue sharing. When determining contract parameters, the contract designer (supplier) should not only focus on her own interests, but should also consider the fairness of the distribution of the supply chain profits. In this model, the fairness concerns of the retailer are reflected with a profit distribution fairness constraint. A numerical example shows that the retailer’s fairness concerns have an important impact on the efficiency of the supply chain and the distribution of supply chain profits. The supply chain’s and the retailer’s profits increase with the retailer’s fairness concerns, whereas the supplier’s profit decreases with the retailer’s fairness concerns. In both cases where the profit distribution of the supply chain is very fair and unfair, respectively, the efficiency of the supply chain may be very high. But the second situation will cause retailer dissatisfaction. This will affect the stable operation of the supply chain, and also will have a negative influence on the supplier. Therefore, the supplier should pay attention to the retailer’s fairness concerns in designing the incentive contract.
VL  - 10
IS  - 6
ER  - 

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