Study On Supply Chain Evolutionary Game Decision-making Mechanism Considering Quality Control

Since mid 1980s, the theoretical research and practical exploration of the supply chain are emerging. In order to pursue lower cost, the enterprises carry out a wide range of business outsourcing activities, meanwhile, the concept of supply chain management is also arises. As an indispensable part of supply chain management, quality management has gradually become a hot spot in the recent research field. The researches mainly concentrate on the production, ordering and so on. But the researchs about the rational limitation of the supply chain participants are not so much.Therefore, the key point of this paper to study the decision making of supply chain participants in the supply chain. The core of this study is to seek the stable strategy of supply chain through replicator dynamics, and to improve the overall efficiency of the supply chain.This paper mainly studies the coordination and equilibrium problem of the limited rational supply chain participants. Firstly, we consider a two-echelon supply chain consisting of a single manufacturer and a single retailer who are both limited rationality. We propose a game model in which the demand is linear sensitive to quality and retail price. We analyze the equilibrium evolution of two players' decisions and income sharing. We find that the cooperation probability between both players would always decrease with the retailer's cost that adjust its strategy while increase with the default and excess returns. Moreover, there exists an optimal partition ratio in the excess profit maximizing the cooperation probability. Secondly, when we considere the retailer's quality inspection behavior, the research shows that supply chain may have two optimal product quality levels under the centralized decision-making.Based on evolutionary game theory, the paper expects to analyze the decision-making mechanism of the limited rational supply chain participants through evolutionary game payment matrix, and provide effective theoretical and practical support for the limited rational supply chain management and profit distribution model.