Research Article

Contract Manufacturer’s Encroachment Strategy considering Fairness Concern in Supply Chain

Table 2

Notations.

ParameterThe meaning of the parameter

Disadvantageous inequity concern parameter
Advantageous inequity concern parameter
Brand differentiation
Transportation cost (or disutility), which indicates the intensity of consumer’s preference for a brand
Demand rate for brand when the contract manufacturer encroaches
Demand of the retailer when the contract manufacturer does not encroach
Retailer’s profit margin under no encroachment
Contract manufacturer’s wholesale price under no encroachment
Retail price of the contract manufacturer’s private brand under no encroachment
, Profits of the contract manufacturer and the retailer in scenario under no encroachment
Profits of the whole supply chain in scenario under no encroachment
Retailer’s profit margin under encroachment
Contract manufacturer’s wholesale price under encroachment
Retail price of contract manufacturer’s private brand under encroachment
, Profits of the contract manufacturer and the retailer in scenario under encroachment
Profits of the whole supply chain in scenario under encroachment