Complex Dynamics Analysis of Closed-Loop Supply Chain considering CSR and Fairness Concerns

Fei Zhang,Zhimin Hu,Xiaogang Ma,Yunzhong Yang,Baogui Xin

doi:10.1155/2021/7787420

Fei Zhang, Zhimin Hu + Show 3 more

Open Access

https://doi.org/10.1155/2021/7787420

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Abstract

This paper constructs a supply chain model composed of a manufacturer and a recycler. The manufacturer’s CSR and the recycler’s fairness concerns are introduced to the benchmark model in turn, and the optimal decision-making problems under different models are studied and compared. The findings show that the manufacturer’s utility will increase and the recycler’s utility will decrease when the manufacturer undertakes CSR within a reasonable range. The optimal utility of manufacturers does not change, and the utility of the recycler is affected by the proportion of CSR undertaken by the manufacturer when the recycler considers fairness concerns. Based on the CSR and fairness model, this paper constructs a dynamic decision system of production quantity and eco-innovation effort. We analyze the influence of adjustment speed on the dynamic decision system and obtain the conditions required to maintain system stability. The research conclusion indicates that with the increase of adjusting parameters, the system gradually appears chaotic state from a stable state and the chaotic state of the system has a negative impact on the utility of manufacturer and recycler. In order to avoid chaos in the system, this paper uses the delayed feedback method to control the system.

Highlights

Due to the rapid economic growth and urbanization, major environmental burdens such as energy depletion, water pollution, and climate change have forced many countries to require manufacturers to assume extended producer responsibility (EPR) regulations
As a management system to solve the environmental problems of waste resources, the fundamental purpose of EPR is to reduce the harm of products to the environment through the manufacturers to fulfill the EPR regulations
If the leading enterprises do not adjust their strategies in time, the fairness concern behavior of the subordinate enterprises will have a negative impact on the long-term development of the supply chain

Summary

Introduction

Due to the rapid economic growth and urbanization, major environmental burdens such as energy (resource) depletion, water pollution, and climate change have forced many countries to require manufacturers to assume extended producer responsibility (EPR) regulations. Hosseini-Motlagh et al [10] discussed the joint decision of product sustainable design level, CSR investment, and product pricing in a dual-channel closed-loop supply chain with third-party recycling. If the leading enterprises do not adjust their strategies in time, the fairness concern behavior of the subordinate enterprises will have a negative impact on the long-term development of the supply chain. Erefore, in order to encourage subordinate enterprises to serve the whole supply chain better and participate actively in recycling, the manufacturer should take the issue of fairness of subordinate enterprises into consideration when making decisions. Us, we need to take the fairness concerns of the recycler into account in the operation and decision-making of the closed-loop supply chain.

Literature Review

Stability Analysis of the CSR and Fairness Concerns Model