Research Of Supply Chain Inventory Management Considering Quality Issues Under Limited Rational Situation

With the development of economy,the competition between enterprises is fiercer.An individual enterprise is hard to seek development alone.Supply chain is a kind of new enterprise "ecosystem",and the competition between enterprises has gradually evolved into symbiosis and competition between supply chains.However,the connection between the chain members is not only the inventory decision making.Recently some well-known companies such as Toyota,Supor and others have raised quality problems.Quality management in supply chain management has attracted more and more close attention of the enterprise and scholars.While with the speeding up of the global economic integration,complexity of the supply chains has increased.And enterprises faces more severe supply chain quality control problems.Therefore,how to improve and ensure the quality of the product is one issue suppliers and retailers attach great importance to.How to better achieve high level quality control and supply chain coordination mechanism at a lower cost becomes the hot topic in academic circles.But the existing supply chain quality management research based on inventory management assumes that the supply chain members are completely rational persons.There is a certain gap between the research results and real practice.And the theory has certain difficulty in guiding the enterprise practice.Based on the reality and theoretical background,the paper considers retailers,product inspection,quality investment of suppliers,defective product punishment,option contract and a series of punitive and incentive mechanism in research,then analyzes the logit choice(probability selection),overconfidence and loss aversion limited rational behaviors and their influence on decision-making.Based on the above research and analysis,the main conclusions of this study are as follows:First,under the economic order quantity model,when the supplier's products quality level decreases,retailers will increase his order quantity.However,the order cost per unit time increases more.Therefore,under a certain quality level of the products,retailers should consider changing to a new supplier,or taking other mechanisms to improve the products quality of the supplier.Probability choice under this background may help to reduce the cost changes.Secondly,in overconfidence limited rational situation of the inventory and quality management,the retailer's inventory are deviating from the optimal value under the perfectly rational.But influence of overconfidence on decision making is affected by the inventory management mode.The RMI model suffers most and the VMI model suffers least.But no matter in perfectly rationality or overconfidence situation,the supplier's quality investment is positively related to the retailers' inventory.Finally,when a retailer has loss aversion preference,he will reduce its final order quantity,while the supplier reduces its product quality investment more.But the effect is greatly different even under the same decision.Loss aversion makes the retailer's profit fall,while the supplier's increase.At this point,an option contract can provide a loss remedy means for the retailer,but it is still restricted by the supplier.