Dairy Supply Chain Quality Control Based On The Sharing Of Internal Failure/External Failure

Dairy products occupy a pivotal position in people’s daily life. However, in recent years, quality problems of dairy industry are common. The actual case analysis shows that dairy quality problems may occur in the supply of raw materials, manufacturing, distribution and other processes. Therefore, the study of quality control of dairy products from the perspective of supply chain is of great practical significance. Meanwhile, based on the literature review of supply chain quality management and dairy supply chain quality management, it is concluded that the study of dairy supply chain quality control using contract theory has great theoretical significance.This paper relies on the Science and Technology Support Program of National Ministry of Science and Technology (2014BAH23F01). Based on internal failure and external failure, this paper studies dairy supply chain quality control with complete information:Firstly, this paper summarizes the quality formation process of dairy supply chain and gives the definition of dairy supply chain quality control.Secondly, based on the quality formation process of dairy supply chain and potential quality problems in each process, the paper defines the research object as the quality of raw materials and production.Thirdly, based on internal failure and external failure, this paper studies dairy supply chain quality control in the centralized setting and decentralized setting, respectively. Contract I, Contract E, and Contract E&I are designed in the decentralized setting, and the first best quality effort and the first best profit are solved by backward induction.Then, a specific quality effort cost function is used to compare the centralized setting and decentralized setting. The best contract in the decentralized setting is Contract E&I based on the first best quality effort. And a numerical example shows that although coordination is not achieved under Contract E&I, quality effort and the total profit of the supply chain have reached a good level. Therefore, Contract E&I is effective and can be used to implement dairy supply chain quality control.Finally, the main points of the thesis are summarized and future research is proposed.