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

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.