Research on Joint Decision-Making of Timely Delivery, Product Quality and Marketing in Supply Chain Based on Differential Game

Abstract

Due to the sudden surge of orders, it is difficult for suppliers with a limited capacity to ensure that all orders are delivered in time and all the products are qualified. Suppliers are likely to put more limited capacity into completing orders, thus ignoring the quality of products. This will easily lead to the occurrence of product quality events, and then affect the goodwill of enterprise products. The innovations of this paper are as follows: first, based on the above facts, a negative and dynamic correlation between the delivery level and the quality level is established, which has been involved in previous studies. Second, the joint decision model of timely delivery, product quality, and marketing is constructed. Thirdly, centralized decision-making is the best way of supply chain cooperation, and cost sharing contracts can coordinate the supply chain. This paper provides guidance for enterprise managers when making decisions on quality, marketing and delivery. It also provides the basis for enterprise managers to formulate effective cooperation models. We can draw some research implications: when consumers are less sensitive to timely delivery, enterprises should give some coupons and small gifts to consumers in exchange for the extension of delivery time and put their limited capacity into improving the product quality. When consumers are highly sensitive to timely delivery, they can outsource some orders to cost-effective and professional third-party enterprises, which not only improves the delivery rate but also improves the product quality.