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Quality control strategy in supply chain under asymmetric information

Author

Listed:
  • Cui-hua Zhang
  • Hai-bin Yu
  • Xiao-yuan Huang

Abstract

This paper is essentially concerned with the supplier and the buyer's quality control decision in supply chain with asymmetric information. The paper presents principal-agent models regarding the buyer's quality evaluation level and the supplier's quality prevention level decision problems. The paper then focuses on the supplier and the buyer's optimisation problems being turned into optimal control problems under asymmetric information. Maximal principle is used to get the solution. And comparison analyses are made between two different information settings. At last, numerical examples are presented to prove our models and analyses.

Suggested Citation

  • Cui-hua Zhang & Hai-bin Yu & Xiao-yuan Huang, 2009. "Quality control strategy in supply chain under asymmetric information," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 4(1), pages 97-116.
    • Handle: RePEc:ids:ijores:v:4:y:2009:i:1:p:97-116
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    Cited by:

    1. Jeffrey Jarrett, 2014. "The quality movement in hospital care," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(6), pages 3153-3167, November.

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