Supply Chain Coordination of Consumer Electronics Products Considering Product Quality Level

Aiming at the relationship between supply and demand of products formed by suppliers and retailers, the factors that reflect the quality level of products are introduced. Under the condition that product demand is a function of price and distribution intact rate, a decision model is established based on non-cooperative game and cooperative game. The two decision-making models are compared and analyzed. Shortcomings of the traditional contract are pointed out, and the design of the revenue sharing contract can achieve the coordination of the supply chain. The example analysis further validates that improving product quality is beneficial to increase the total revenue of supply chain, and by selecting the appropriate profit distribution coefficient, we can achieve Pareto optimality for both sides. In addition, the research also shows that the coordination contract can effectively motivate the supplier to improve the quality of the product.