A Study of Electronic Product Supply Chain Decisions Considering Quality Control and Cross-Channel Returns

Haiping Ren (), Rui Chen and Zhijun Lin
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Haiping Ren: Teaching Department of Basic Subjects, Jiangxi University of Science and Technology, Nanchang 330013, China
Rui Chen: Business School, Jiangxi University of Science and Technology, Nanchang 330013, China
Zhijun Lin: Business School, Jiangxi University of Science and Technology, Nanchang 330013, China

Sustainability, 2023, vol. 15, issue 16, 1-23

Abstract: This article focuses on the return problem of electronic products caused by the low level of quality control in the production process. Based on previous research, a centralized decision model (DM) and four kinds of decentralized DMs are constructed according to the differences in the supply chain decision order and the return loss bearers. Moreover, the impact of quality control on the return rate and market demand is also considered in the model research to achieve the optimization of the model. Using Stackelberg game knowledge to compare and analyze supply chain decisions, profits and influencing factors in different models, the final conclusions are drawn: (1) the decision is optimal and the profit is the highest in the centralized DM; (2) when the manufacturer dominates the supply chain decision, the difference in return loss bearers does not affect the supply chain decision and profit; (3) compared with other decentralized DMs, when the retailer dominates the supply chain decision and the manufacturer bears the return loss, the supply chain decision is better and the profit is higher; (4) the quality control level and the total profit in the five supply chain models are proportional to the quality control effect and the consumer perception of quality control. In addition, this paper introduces a joint contract to coordinate the supply chain under the decentralized DM and achieves the desired results. Finally, the relevant research findings and the validity of the contract are verified in the arithmetic analysis.

Keywords: quality control level; supply chain decision; cross-channel returns; loss of return (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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