Research Of Moral Hazard Of Closed-loop Supply Chain Based On Mass Discrepancy

With the development of Chinese productivity, there are more and more products access to market every day, meanwhile, there are more and more used products come into being. But most of used products can be reused and reproduced. Manufacturers can use these resources to remanufacture products to save cost and to boost profits as well as save resources and protect environment, so there are more and more enterprises have participated into used products recycle and remanufacturing.This paper introduces correlation theory of moral hazard, quality control and quality inspection, then summary and analysis research contents and method. Third-party recycler of closed-loop supply chain is charged of used products recovering, quality inspection and classification, manufacturers is charged of used products reproducing. The level of quality inspection and classification is decided by effort level of third-party recyclers, and the level of quality inspection and classification can affect production cost and defective percentage. Thus, there has moral hazard caused by information superiority of used product quality inspection effort level. Manufacturer uses fixed penalty to inspire third-party recyclers to input enough effort level, then, solve the model to get the best solution by multiplier method with inequality constraints of optimization methods and do relational data analysis.This paper tests and verifies fixed penalty can effectively inspire third-party recyclers to input enough effort level. Through numerical analysis of variation of every parameter, this paper provides effective reference to manufacturer to make decision.