Supply chain optimization based on Shapley fair theory

A supply chain system with one supplier and two homogeneous retailers was considered to investigate the influence of retailers fairness concern on the supply chain and its members decision by using the Shapley fair distribution theory. Through modeling and behavioral analysis, it was found that retailers fairness concern will reduce suppliers optimal wholesale price and improves retailers own optimal order quantity in equilibrium. Besides, retailers fairness concern also increases their profit shares as well as channel profits, which leads to a higher supply chain efficiency.