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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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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Chen, Chialin & Zhang, Jun & Delaurentis, Teresa, 2014. "Quality control in food supply chain management: An analytical model and case study of the adulterated milk incident in China," International Journal of Production Economics, Elsevier, vol. 152(C), pages 188-199.
    2. Chen, Jingxian & Liang, Liang & Yang, Feng, 2015. "Cooperative quality investment in outsourcing," International Journal of Production Economics, Elsevier, vol. 162(C), pages 174-191.
    3. Liu, Wei-hua & Xie, Dong & Xu, Xue-cai, 2013. "Quality supervision and coordination of logistic service supply chain under multi-period conditions," International Journal of Production Economics, Elsevier, vol. 142(2), pages 353-361.
    4. 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.
    5. 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.
    6. Dongxue Guo & Yi He & Yuanyuan Wu & Qingyun Xu, 2016. "Analysis of Supply Chain under Different Subsidy Policies of the Government," Sustainability, MDPI, Open Access Journal, vol. 8(12), pages 1-18, December.
    7. 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.
    8. 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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