Research On Contract Model Considering Product Quality And Loss Aversion

With the development and progress of society,the pattern of economic globalization and trade diversification has been basically determined.World economic activities break through national boundaries,with the help of advanced science and technology and productivity,enterprises are expanding their scope of business activities,and their economy is developing rapidly.However,with the decentralization of business areas,problems of cooperation and communication between upstream and downstream enterprises in the supply chain also follow one after another.The difficulty of controlling product quality has also risen,and it is more and more difficult to guarantee product quality,and various quality incidents emerge in endlessly.Therefore,in the context of economic globalization,quality management needs to break down the barriers of traditional quality management,and the research perspective can no longer be confined to a single enterprise,but should be extended to the upstream and downstream enterprises of the supply chain.By introducing a reasonable contract,coordinating the different quality behavior o f each node enterprise in the supply chain,and considering the universality of the enterprise's behavior characteristics,it is the key point to improve the quality of the supply chain products.Quality has become the basis for the survival and developmen t of enterprises,and product quality control is the key to quality improvement.Loss avoidance behavior is common in the decision-making of supply chain members.For seasonal products with uncertain demand,buyback contract is a widely used means of contract.Therefore,under the random market demand,for seasonal products,this paper first studies the contract model considering quality control and retailer's loss aversion behavior based on buyback contract,and then explores the contract model considering product quality and loss avoidance behavior of both manufacturers and retailers.The optimal strategies and coordination of supply chain under decentralized and centralized decision-making are analyzed and compared respectively,on this basis,the idea of cost sharing is introduced,and a new contract model is established,which proves that the contract can achieve coordination and achieve Pareto improvement.Finally,the effectiveness of the new contract model is proved by numerical experiments,and the effects of loss aversion,cost sharing,repurchase price and other factors on the optimal strategies in each model are analyzed.The results show that if the manufacturer improves the product quality level,with the increasing market demand,the retailer's order quantity will increase correspondingly,and if the retailer increases its order quantity,it will encourage the manufacturer to improve the product quality level in order to maintain customer relationship and obtain sustained order quantity;the buyback contract can not make the supply chain under the background of this paper reach the ideal state;after adding the new contract,the supply chain can improve the profits of individual members and the whole,and achieve Pareto improvement;the loss avoid ance behavior of each member of the supply chain can restrain manufacturers from improving their product quality,and also lead to retailers to reduce their order quantity;with the increase of product qualification rate,the order quantity of retailers wi ll be increased,but not continuously increased,first increased and then decreased.