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Game-Theoretic Analysis Of The Quality Assurance Problem In A Two-Echelon Supply Chain With A Retailer As The Quality Gatekeeper, Zaichen Li

Theses & Dissertations

We consider a two-level supply chain involving a manufacturer and a retailer who serves as the quality gatekeeper. The manufacturer determines a wholesale price and a defective rate and announces his decisions to the retailer, who then makes her decisions on the retail price and identification rate that means the percent- age of the defects identified by the retailer and reflects the retailer’s gatekeeping effort on her quality assurance. We accordingly develop a leader-follower game and solve it to find Stackelberg equilibrium for the manufacturer and the retailer. In order to examine whether or not the supply chain benefits from …