JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2020, Vol. 55 ›› Issue (9): 101-89.doi: 10.6040/j.issn.1671-9352.0.2019.190

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Dynamic quality improvement strategies with delay effect in consumer reference quality

De-qing MA,Jin-song HU*()   

  1. School of Business, Qingdao University, Qingdao 266071, Shandong, China
  • Received:2019-04-08 Online:2020-09-20 Published:2020-09-17
  • Contact: Jin-song HU E-mail:hujinsong@qdu.edu.cn

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Abstract:

Considering the delay effect of manufacturer product improvement on consumer reference quality, the supply chain differential game models of Nash non-cooperative game, cooperative game, partial cooperative game for manufacturer to bear retailer advertising cost and partial cooperative game for retailer to bear manufacturer quality cost are constructed. The member equilibrium strategy and supply chain performance of four game modes are obtained with the help of differential game theory. It is found that the delay effect will affect the quality improvement strategy of the manufacturer, but will not affect the advertising strategy of the retailer. The marginal revenue and cost of the members are the key factors affecting the strategy and performance. The results of comparative analysis and numerical examples show that partial cooperative games of supply chain members can not realize the perfect coordination of supply chain, but it can improve the decentralized supply chain in Pareto. The strategies members performance and consumer reference quality level under cooperative games are higher with or without the delay effect.

Key words: reference quality, delay effect, quality improvement, differential game, delay differential equation

CLC Number: 

  • F224

Table 1

Parameter sensitivity analysis"

q N A N q C A C q S A S q B A B q IN A IN q IC A IC q IS A IS q IB A IB
ρ M — — — —
ρR — — — —
kM — — — — — — — —
kR — — — — — — — —
δ — — — — — — — —

Fig.1

Consumer reference quality with/without delay effect"

Fig.2

Influence of time delay on total profit of supply chain"

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