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Quality improvement in competing supply chains

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  • Xie, Gang
  • Wang, Shouyang
  • Lai, K.K.

Abstract

In this study, we consider quality improvement in a given segment of the market, shared by two supplier-manufacturer supply chains which offer a given product at the same price but compete on quality. The mechanism on the selection of supply chain structures and quality improvement strategies of the two supply chains is described. In particular, we analyze three possible structure combinations: two integrated supply chains, two decentralized supply chains, and one integrated and one decentralized supply chains. Between the supply chains, Nash's non-cooperative game is implemented. Numerical experiments illustrate the mechanism and some related issues are discussed.

Suggested Citation

  • Xie, Gang & Wang, Shouyang & Lai, K.K., 2011. "Quality improvement in competing supply chains," International Journal of Production Economics, Elsevier, vol. 134(1), pages 262-270, November.
    • Handle: RePEc:eee:proeco:v:134:y:2011:i:1:p:262-270
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    6. Lambertini, Luca, 2018. "Coordinating research and development efforts for quality improvement along a supply chain," European Journal of Operational Research, Elsevier, vol. 270(2), pages 599-605.
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    12. Peng Ma & Yeming Gong & Mingzhou Jin, 2019. "Quality efforts in medical supply chains considering patient benefits," Post-Print hal-02312386, HAL.
    13. El Ouardighi, Fouad, 2014. "Supply quality management with optimal wholesale price and revenue sharing contracts: A two-stage game approach," International Journal of Production Economics, Elsevier, vol. 156(C), pages 260-268.
    14. Chakraborty, Tulika & Chauhan, Satyaveer S. & Ouhimmou, Mustapha, 2019. "Cost-sharing mechanism for product quality improvement in a supply chain under competition," International Journal of Production Economics, Elsevier, vol. 208(C), pages 566-587.
    15. Lee, Sunghee & Yoo, Shijin & Kim, Daeki, 2016. "When is servitization a profitable competitive strategy?," International Journal of Production Economics, Elsevier, vol. 173(C), pages 43-53.
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    18. Ma, Peng & Wang, Haiyan & Shang, Jennifer, 2013. "Supply chain channel strategies with quality and marketing effort-dependent demand," International Journal of Production Economics, Elsevier, vol. 144(2), pages 572-581.
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    20. Chen, Zhisong & Su, Shong-Iee Ivan, 2020. "International competition and trade conflict in a dual photovoltaic supply chain system," Renewable Energy, Elsevier, vol. 151(C), pages 816-828.
    21. Yao-Yu Wang & Jiasen Sun & Jian-Cai Wang, 2016. "Equilibrium markup pricing strategies for the dominant retailers under supply chain to chain competition," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 2075-2092, April.
    22. Lin Ma & Yuefan Zhai & Tian Wu, 2019. "Operating Charging Infrastructure in China to Achieve Sustainable Transportation: The Choice between Company-Owned and Franchised Structures," Sustainability, MDPI, vol. 11(6), pages 1-22, March.
    23. Zhao, Ming & Dong, Ciwei & Cheng, T.C.E., 2018. "Quality disclosure strategies for small business enterprises in a competitive marketplace," European Journal of Operational Research, Elsevier, vol. 270(1), pages 218-229.
    24. Chen, Zhisong & Su, Shong-Iee Ivan, 2022. "Countervailing effect and mitigation policy: A game-theoretical study in dual international competing photovoltaic supply chains," Renewable Energy, Elsevier, vol. 183(C), pages 160-171.
    25. Azimian, Alireza & Kilgour, D. Marc & Noori, Hamid, 2016. "Mitigating contagion risk by investing in the safety of rivals," European Journal of Operational Research, Elsevier, vol. 254(3), pages 935-945.

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