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Chinese Journal of Management Science ›› 2026, Vol. 34 ›› Issue (4): 243-255.doi: 10.16381/j.cnki.issn1003-207x.2023.0619

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Closed-loop Supply Chain Decision of Hybrid Recycling Channels Considering Fairness Concerns

Xiaogang Cao1,3, Bowei Cao1, Hui Wen2()   

  1. 1.School of Management,Wuhan Textile University,Wuhan 430073,China
    2.School of Science,Hubei University of Technology,Wuhan 430068,China
    3.The key Research Base of Humanities and Social Sciences in Colleges and Universities in Hubei Province— Enterprise Decision Support Research Center,Wuhan 430073,China
  • Received:2023-04-13 Revised:2023-08-14 Online:2026-04-25 Published:2026-03-27
  • Contact: Hui Wen E-mail:wen_hui@126.com

Abstract:

With the continuous improvement of social material living standards, the amount of waste is also increasing. Although China 's resource recycling capacity has been significantly enhanced, the overall efficiency of resource utilization is still not high, and the problem of low standardization level of renewable resource recycling has not been completely solved. How to improve the recycling system of waste materials in China and improve the level of resource recycling is still an urgent problem to be solved. Some enterprises improve the recycling of resources by multi-channel recycling. For example, in addition to carrying out recycling business on the official website and self-operated offline service stores, Huawei also cooperates with Jingdong, Aihuishou and other enterprises to carry out electronic equipment recycling and trade-in; in addition to recycling directly from consumers through after-sales channels, Midea also opens old machine recycling services to its distributors. However, when enterprises cooperate with enterprises in different channels, the behavioral preferences of different enterprises, such as fairness concerns, will affect their willingness to cooperate and bargaining power. In view of this, the following research questions are proposed: (1) What is the optimal decision of supply chain members under fairness concerns? (2) How does the fairness concerns behavior of supply chain members affect the optimal decision and profit? (3) Which recycling mode is optimal for the supply chain when the supply chain members have fairness concerns?To solve these problems, the closed-loop supply chain (CLSC) structure of hybrid recycling channels composed of different recycling participants is investigated. Considering the fairness concerns behavior of the retailer and the third-party recycler, four kinds of hybrid recycling channel models are established to compare the equilibrium decisions and profit of supply chain members: the hybrid recycling channel model of the manufacturer and retailer (MR); the hybrid recycling channel model of the manufacturer and third-party collector (MT); the hybrid recycling channel model of the retailer and third-party collector (RT); and the hybrid recycling channel model of the manufacturer, retailer and third-party collector (MRT). The result shows that: (1) the recycling competition among members in the CLSC will reduce the total recycling quantity of waste products; (2) when the fairness concerns of the retailer and the third-party collector exceed a certain range, the optimal recycling mode of both members witnesses a change; (3) the influence of fairness concerns coefficient on utility is diverse under different models, and the retailer and third-party collector have the maximum utility in RT mode. Finally, the effectiveness of the conclusion is demonstrated through numerical analysis.

Key words: hybrid recycling channels, fairness concerns, closed-loop supply chain, Stackelberg game

CLC Number: