Research Article
Contract Manufacturer’s Encroachment Strategy considering Fairness Concern in Supply Chain
| Parameter | The 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 |
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