Abstract

In the manufacturing process of aeronautical complex products, for the following problems: develop long production cycle, a large number of ancillary products, a plurality of participating units, etc, and the status of the frequency of quality problems, using single-phase static game model in the case of asymmetric information, study on Supplier Quality insufficient investment, which resulting in opportunistic behaviour reasons. And using KMRW dynamic game model, we quantitative analysis the mechanism and crucial role of reputation mechanisms to ensure aeronautical complex product manufacturing supply chain and effective operation.

Highlights

  • The behavior of the constituent entities of the supply chain strategy

  • Compared with traditional single enterprise quality management methods, supply chain quality management is focusing on the supply chain operations and structure management (Hsieh and Liu, 2010)[3]

  • This paper introduces KMRW model in supply chain quality management and to explore the mechanism of reputation in the supply chain to ensure product quality

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Summary

Model assumptions

Supplier B has two types: cooperative and opportunistic. Uncooperative type B is possible to disguise as cooperative in the pre-transaction process for the final stage. In the long process of repeated game, manufacturer A can observe the behaviour of B and consequent adjustment measures. In the transaction process between manufacturer A and supplier B, the single stage utility function is:. V s is the expected occupation rate of the manufacturer A, it represents manufacturers A expected judgment for the supplier B’s action, 0 dV s d1 ; α indicates the type of supplier B, When α =0, it represents supplier B is cooperative. At the beginning of the game, P0 indicates the priori probability that manufacturer A consider Supplier B is cooperative. 1- P0 indicates the priori probability that manufacturer A consider Supplier

Model analysis
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Conclusion

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