Maintenance optimisation and coordination with fairness concerns for the service-oriented manufacturing supply chain

We consider a service-oriented supply chain consisting of a manufacturer and an operator both with fairness concerns. The manufacturer provides equipment maintenance by choosing an optimal maintenance service level to maximise its profit, which may reduce the profit of the operator and the efficiency of the supply chain. We initially establish optimisation models with fairness concerns, and then a novel incentive strategy (LB strategy) is proposed to achieve the supply chain coordination. The LB strategy is compared with the existing cost subsidy (CS) strategy. Also, our analyses reveal the impact of fairness concern on the service-oriented manufacturing supply chain.