Study on the Quality-Control Mechanism of Dairy Supply Chain for Single Moral Hazard

In this paper, we presented two Coordination models for Single Moral Hazard. One is the External Lose Sharing model and the other is the Internal Punishment model. After the demonstration, we also completed the numerical simulation and fairness analysis with the cases of effect of Additional Compensation, effect of Incoming Inspection and Outing Detection and effect of the accuracy of the Independent Investigation System. Two kinds of the models can incentive the Manufacturer and the Milk Depot to improve their quality, and better the final dairy products ultimately. The Additional Compensation for the consumer and the probability of Incoming Inspection and Outing Detection have significant influence on the quality of the Milk Depot and Manufacturer with the exception of the accuracy of the Independent Investigation System, but it can drive the fairness criterion to be more easily achieved.