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Chinese Journal of Management Science ›› 2008, Vol. 20 ›› Issue (6): 142-149.

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Study on Dynamic Quality Incentive Model of Supply Chain Based on Intertemporal Constraints

WANG Jie1, CHEN Gong-yu1, ZHONG Zu-chang2   

  1. 1. College of Lingnan, Zhongshan University, Guangzhou 510275, China;
    2. Guangdong University of Foreign Studies, Guangzhou 510006, China
  • Received:2008-05-19 Revised:2008-12-01 Online:2008-12-31 Published:2008-08-20

Abstract: This paper mainly considers the quality incentive mechanism in the supply chain composed of one supplier and one retailer. Firstly,it makes use of a single-period quality incentive model to discover the deep-seated causation for lack of motivation in supplier's quality improvement devotion. And then constructs a dynamic quality incentive model based on intertemporal constraints to intrigue supplier's quality devotion. The result of our research shows that,in the first period of the dynamic model,supplier's quality devotion will just equal the slope of retailer's compensated wholesale price,but in the second period of the dynamic model,supplier's quality exceeds the slope of retailer's compensated wholesale price,thus displays the efficiency of the dynamic model on bestirring the supplier's quality devotion. Finally,the numerical analysis shows that the intertemporal quality incentive mechanism can greatly improve the total supply chain utility in contrast to the single-period mechanism.

Key words: intertemporal constraint, dynamic model, supply chain, quality incentive

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