Game Analysis on Trading Volume between Nodes in Food Supply Chain Considering the Quality Risk

Abstract

The downstream nodes only compare the cost of inventory with the cost of stock to determine the optimal volume without considering the quality risk in the traditional supply chain. In fact in the whole supply chain, some intermediate products with quality defects will have a significant impact on each supply chain node and the entire supply chain operations and gains. Both cases of cooperation and non-cooperation between upstream and downstream nodes in food supply chain considering qualitative factors are discussed in this paper, and The both sides will select a conservative approach to reduce the order quantity in order to reduce the loss, and at the same time they will need to bear the risk of quality loss together. The overall benefit of the supply chain under the cooperation is the largest, but this time the effectiveness of each individual company may not be optimal.