Study On Supply Chain Quality Management Based On Game Theory

With the fast development of economy, the rapid change of market requirement and continuous advancement of information technology, the competition in the market has changed to the competition among supply chains from the traditional competition among enterprises. In order to gain more profits in the competition, companies concentrate on developing its core business and outsource non-core businesses to other businesses. Therefore, the enterprise, its suppliers and distributors have been in a supply chain. How to ensure the quality of the parts and the products in the enterprises'supply chain meet the requirements, has become the primary problem of the core enterprise in the supply chain. The supply chain quality management is to manage the quality activities in the whole supply chain. Recently, the event of recall in Toyota Motor Corporation has caused the company suffer heavy losses. The main reason for this event is the quality of the parts provided by the supplier does not meet the requirements. This paper's core content is to study the quality control and quality incentives between the suppliers and the manufacturing in the supply chain.First of all, this paper analyses the limitations of the quality management, the shortcoming of supply chain management and the problems in the supply chain quality management based on the analysis of the current research on supply chain management, supply chain quality management, supply chain quality control and the analysis of the current problems of supply chain quality management. This paper studied the following two problems: The core enterprises in supply chain lack of effective control of product quality and lack of effective incentives to the suppliers. To solve the two problems, this paper used the game theory, principal-agent theory, quality control sampling theory and statistics theory to establish the quality control decision-making game model and the supply chain quality contract model.Secondly, Based on the analysis, optimization and calculation, this paper concluded that enterprises can make the quality sample decisions based on the production quality level of suppliers, suppliers'penalty coefficient, the supplier'risk preference and their relationship; Enterprises can design the contract parameters to incentive the suppliers to supply high level products and make optimal business performance.Finally, this paper took B Company which produces motor parts for example. The case study helped prove this paper's conclusions have some effectiveness and validity. Besides, this paper gave some suggestion and advices to the enterprises based on the current situation of supply chain quality management and this paper's conclusions.Based on in-depth study, the main conclusions of this paper include:(1) There are lots of studies on the supply chain based on game theory, but there are not enough on supply chain quality management. This paper concluded game theory and principal-agent theory could be applied in supply chain quality inspect and supply chain quality incentives.(2) This paper established a supply chain quality inspect game model, and found out the relationship between two parties'sample inspect and supplier's production level, and the supplier punish coefficient to help the enterprises to gain more profits.(3) This paper established a principal-agent quality contract model, found out the pay-off coefficient to help the manufacturer make best contract and get more profits.