Supply Chain Contracts Based On The Product Structural Module

With the development of the horizontal integration of the supply chain, product modular design is universal, core enterprise must consider that supply chain members'decision-making and profits may be influenced by product modularity level and quality while designing supply chain contract . Few scholars consider the impact of modular levels of products in the existing research about supply chain contract and quality control contract, but the modularity level of the product is an important factor that affects the decision of supply chain members in actual production. Therefore, it's of theoretical and practical significance to taking quality and modularity level of product into consideration while selecting and designing supply chain contract.Firstly, this paper focused on the supply chain of single supplier and single manufacturer, analyzed the relationship between modularity level and performance and module's quality, established the Stackelberg model dominated by manufacture while considering product modularity and quality, found the optimal quality input of supplier and manufacturer and the optimal level of product modularity under centralized and decentralized decision making. Study shows that the revenue sharing contract can't realize supply chain coordination, but can realize the Pareto improvement of supplier's and manufacturer's profit while the coefficient is within a certain range. To realize supply chain coordination, we studied the quality cost sharing contract, which proved that the cost sharing contract could realize supply chain coordination.Secondly, this paper considered the influence of modularity level while selecting quality control mode, analyzed two quality control contracts: the internal penalty contract based on quality inspection, the quality assurance contract based on external troubleshooting. Obtained the optimal quality decision of supplier and manufacturers under two contracts. Found the criterion condition that choose which contract. Research shows that the internal penalty contract can bring the supply chain to the profit level under centralized control, and the manufacturer's choice of quality control contract is affected by the modularity level of the product.