Research On Model Construction And Simulation Of Contracts Coordination To Closed Loop Supply Chain Quality Control Based On System Dynamics

Closed-Loop Supply Chain quality control has been one of the key issues in improving CLSC performance.However,the mixed processes,structural complexity,subject diversity, system uncertainty and other features of CLSC make the difficulty of quality control greatly increased.Thus,in-depth study of how to ensure the quality control effective combination between each link and overall coordination have an important research significance. Contracts can effectively avoid risk, reasonably allocate the CLSC profit and then let each member’s performance improve. So this paper uses contracts coordination to research the quality control problem in CLSC.Using system dynamics,the paper establishes the quality control model and contract coordination quality control model of CLSC, analysises how to establish an effective contracts coordination mechanism,motivate the CLSC upstream and downstream enterprises collaboration in quality control, so that enhancing the CLSC overall quality level and constructing high-performing CLSC.Firstly, the paper establishes the quality control model of CLSC and the simulation analysis indicates that the main factors affecting the CLSC product quality are the quality level of raw materials and recycling for remanufacturing product, the service investment in sales determines the quality of service level. Next, the paper establishes the contracts coordination quality control model of CLSC.Through the simulation analysis, the results show that the reward and penalty contract of quality can effectively restrain and motivate supplier quality behavior under a healthy contract proportion. Within a certain range of quality cost allocation, quality cost allocation contracts can effectively incentive and restrict seller improving recycle product quality and increasing the proportion of recycling,and can make the closed-loop supply chain overall profit improved. Healthy revenue-sharing contract can effectively motivate seller carry on the improvement of service quality and promote the overall benefits of CLSC,the revenue-sharing ratio is decided by the parties negotiating power. Finally, establishing reward and penalty contract-cost allocation contract model, reward and penalty contract-revenue sharing contract model of quality control. The simulation results show that combination contracts can coordinate the product quality and service quality improvement effectively at the same time, and CLSC performance is more superior when coordinating with combination contracts.