Channel coordination in a closed‐loop supply chain with fairness concerns under further extended producer responsibility

Abstract

Abstract This paper proposes a further extended producer responsibility system to study the operations of the supply chain with fairness concerns. By comparing four scenarios regarding whether channel members concern fairness, we obtain the following results: the coordinated development can be accomplished for channel members when the dominant producer makes pricing decisions with more consideration for the profit of follower; both the producer and the retailer can adjust the degree of demand information disclosure in some ways to obtain more profits; the further extended producer responsibility system (FEPR) system can serve as an effective low‐carbon development measure that leads to higher emission reduction and end‐products recovery.

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