Supply chain coordination and quality level are two crucial facts for supply chain to obtain a competitive advantage. Therefore, it is necessary to explore and analyze the supply chain coordination problem considering the quality level. In this paper, the two-stage supply chain coordination problem considering loss aversion and quality level is investigated. Based on loss-averse retailer assumption, the loss aversion of retailer is portrayed by the loss-averse utility given by Wang and Webster[31]. Then, the optimal strategies of the supplier and the loss-averse retailer are analyzed at the decentralized supply chian respectively. And the optimal strategies of the supplier and the retailer are analyzed at the centralized supply chain respectively. Meanwhile, the two-stage supply chain coordination problem with the wholesale price contract is studied. Further, a supply chain coordination contract model is constructed by combining the wholesale price contract and the quality cost sharing contract, and the validity of the model is proven. Through the analysis, the several conclusions are obtained as follows:under the decentralized supply chain, the supplier's quality level strictly increases with the loss-averse retailer's order quantity, and the loss-averse retailer's order quantity strictly increases with the supplier's quality level; under the centralized supply chain, the supplier's quality level strictly increases with the retailer's order quantity, and the retailer's order quantity strictly increases with the supplier's quality level; the wholesale price contract cannot coordinate the two-stage supply chain; the contract combined the wholesale price contract and the quality cost sharing contract can coordinate the two-stage supply chain under certain conditions. Furthermore, under the decentralized and centralized supply chain, the impacts of the changes of the parameters in the model on the optimal quality level and order quantity are presented through the sensitivity analysis of the parameters. The research results provide theoretical guidance for the supply chain managers or members.
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