The Impact of Quality Regulation on the Decisions of a Global Supply Chain
نویسندگان
چکیده
In this study, we investigate the impact of quality regulation on the quality of investment and the pricing decisions of a global supply chain, where products are produced by a manufacturer in one country, but sold by a retailer in another country to its market. In particular, the quality of the products is regulated by policy makers of the importer country. We consider two cases of supply chain structures: vertical integration and a decentralized setting. A numerical example of a global supply chain where the manufacturer in China takes orders from a retailer in another country, one which enforces quality regulations, is presented to illustrate some related issues. Finally, conclusions are drawn and some topics for future work are suggested.
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