Research On Supply Chain Contract Coordination With The Quality Concerns Of Both The Supplier And The Retailer

With the development of society and the rapid progress of technology,quality management is playing an increasingly important role in both supply chain management and logistics management fields.This paper regards quality as a decisive factor in supply chain and analyzes the two-echelon supply chains constructed by upstream manufacturers and downstream retailers,the research focuses on quality-related factors,such as the quality of the final products,quality cost produced by control or inspection behavior,etc.This paper mainly studied the quality factors such as the quality of the products in the supply chain,the influence of the quality cost of supply chain contract coordination in the two-echelon supply chains.Different from the traditional quality management within the enterprises which merely pay attention to their own internal quality management,this research mainly starts in terms of the specific quality behavior of all the supply chain members.It is concluded that the quality of the final products is an outcome of the supply chain quality behavior and motivation of many factors such as the result of the interaction of all the supply chain members.This article hypothesizes that the suppliers(manufacturers)and the retailers to be the risk-neutral,and the suppliers sells its products to retailers,the suppliers(manufacturers)takes action to control the quality of the products to reduce the defect rate of the products,while the retailers at the same time make inspection to the quality of products purchased from suppliers(manufacturers).Through the research and analyses of several different types of supply chain contract models with the manufacturers being the Stackelberg leader,including quality coordination contract model in the form of wholesale price &reward-punishment,the quality improvement contract considering recall factors,we found that with the quality concerns of both members of the two-echelon supply chains under uncertain demand,through the incentive contracts mechanism between manufacturers and retailers,namely,the quality contracts or agreements,the coordination of the two-echelon supply chain can be eventually achieved.