The Research On Quality Improvement Of Supply Chain Considering The Product Recall

With the development of the market economy and globalization of trade, product safety issues are affecting every corner at the "global village" within thousands of families and every consumer. Manufacturers, distributors or consumers and even government agencies have become increasingly aware of the importance of the implementation of recalls for the defective products and the hazardous products. The recall of defective products, related to the credit of the manufacturer and vendors, the survival of the corporation, the consumer’s life and health, social stability, economic globalization today, also related to international trade and normal development. Product recall involves many industries, such as food, medicine, automobile, toy and other industries, but also to the many stakeholders. However, in recent years, frequent defects in our products makes large losses of the social and personal life and tremendous property.As companies outsource more product design and manufacturing activities to other members of the supply chain, improving end-product quality has become an endeavor extending beyond the boundaries of the firms’in-house process capabilities. In this paper, we discuss the root cause analysis contact by which product recall costs can be shared between a manufacturer and a supplier to induce quality improvement effort. The first three chapters is a theoretical overview, the forth and fifth chapters are the central part of the paper. The forth chapter discussed the improvement of the supplier’s and the manufacturer’s product quality and the optimal cost sharing rate under the consideration of complete information about the components about recall,in which the details of research carried out detailed simulation and numerical analysis. Proposed cost-sharing incentives to improve the quality of the supply chain members.The fifth chapter discussed the improvement of the supplier’s and the manufacturer’s product quality and the optimal cost sharing rate under the consideration of incomplete information about the components about recall, in which the best of the model study carried out a detailed simulation and calculations. Under Incomplete information about the components the research is how to design contracts in order to achieve supply chain quality improvement.Under the complete information of component quality and incomplete information of the component quality, the supply chain quality improves. In this paper, a two-stage supply chain of a supplier and a manufacturer sets the corresponding contracts, sharing the recall cost. Not only is the revenue of the entire supply chain maximized, but also the revenue all members of the supply chain on their own are maximized.