Research On Quality Warranty Contract In Supply Chain Quality Management

The trend toward integration of global economy has become increasingly. In order to gain the competitive advantage in the fierce competition,enterprises have taken outsourcing strategy that focus on core strategy and operation and cooperate with other companies about non-core operation. It is the main idea of the supply chain management. Quality is the life and core competence of an enterprise. Quality control has become a common obligation of all enterprises in the supply chain,so supply chain quality management becomes a core issue. As the enterprise on the supply chain is an independent legal entity and cooperate with each other,Contract design become a effective way to promote closer cooperation between each other,so as to avoid opportunism which is harmful to the performance of the supply chain.Based on introducing the theory of supply chain quality management,the paper analyzes two issues caused by asymmetric information. Firstly,the paper describes the moral hazard problem in supply chain quality management. We use principle-agent theory to focus on the optimal quality contract design with the supplier's quality control action unknown in a two-echelon supply chain structure including a manufacturer and a supplier. In order to motivate the supplier and the manufacturer's actions and maximize the profits of the supply chain,the paper analyzes how to specify conditions on contract parameters. And then, it analyzes the two sides of the optimal strategy for the choice of quality control and get the Pure-Strategy Equilibriums of the game under symmetric information conditions. Lastly,the paper designs a contract including the price discount and quality warranty to solve the adverse problem.By use of agency theory and game theory,the paper studies the issues of the supply chain quality management regarding contract as a tool. The paper aims to provide effective theory reference for enterprises in the supply chain to make the quality control decision and establish a long-term cooperative partnership.