A Study On The Cooperative Mechanism Of Suppliers In Product Quality

With the integration with the global economy, supply chain has become a principal part of competition. Generally speaking, there are four factors that can indicate the competitive abilities of supply chain --cost, quality, reactive speed and service, while the quality of product and service need all members of supply chain to guarantee and to carry out together. This paper studies the design of supplier's incentive mechanism between a supplier and a manufacturer in a two-class supply chain by using of the thought and method of game theory and the information economics, to ensure the suppliers carrying out contract as well as realizing their promising, which can provide high quality raw material and components.Based on existing research, the paper focuses on analyzing and comparing domestically and internationally upon these research results. Then on the principal-agent problem in the supply chain management, it depicts the conditions for fellowship to efficiently maintain in long-term and the incentive mechanism for facilitate to operate effectively by designing and analyzing a dynamic model with incompletion information. Finally, it studies game equilibrium of product quality control between a supplier and a manufacturer in supply chain under both the complete and incomplete information.The core of this paper is to discuss effective restraints and inspirits from contract and reputation with analyzing information economy and game theory. Different from other research, the paper launches its research from supplier quality prevention and manufacturer quality verification, when designing supply chain contract, finally prove the existing of optimized contract, and provide effective academic reference for supplying contract negotiation. It also uses reputation theory to set up quality game model between supplier and manufacturer, to further prove that reputation is an incentive mechanism and make supplier gaining long-term benefit, and provides academic support for the possibility and inevitability of setting up long-term partnership among suppliers.