A Study On Optimal Price And Quality Strategies Of A Distributed Supply Chain System

Nowadays with the forming of global market and the increasing of the marketcompetition, the competition of enterprises is not just between enterprises based on priceand cost, exactly, it is a kind of all-round competition between the supply chains which thecompany belongs to based on the combination of price, quality, cost, service, flexibilitycoordination and so on. At the same time, with the economic development and technicalprogress, consumers think more of the product quality and manufacturers can produceproducts of different quality levels. So enterprises pay more attention to supply chainmanagement.Most of the traditional research about supply chain quality management always payattention to theoretical parts, so this thesis mainly focus on quantitative analysis and takesprice and quality as the main competitive factor of supply chain competition. By usingmathematical method and aiming at the optimization of supply chain system, we study thesupply chain game of duopolistic market and make the price and quality strategies whenthe game reaches Nash equilibrium. This thesis consists of five chapters in total. Firstly,we conduct the background of our study. Next, we conduct literature review in the area ofsupply chain management systematically. The following parts builds the model of a supplychain consist of one supplier and two manufacturers. By solving the balance when supplychain reaches Nash equilibrium, we get the equilibrium solution of price and qualitystrategies. Then, Base on the result, we make some numerical analysis about qualitystructure and the number of manufacturers. Trying to give advice to the member of supplychain about how they make a quality decision. In the end, we make a summary of thethesis and raise the outlook for future research.