Quality evaluation decision in supply chain under asymmetric information

Quality evaluation decision problem in outsourcing is studied tinder different information backgrounds. Based on the quality contracting optimization models in references [1,2], a principal agent model concerned with quality prevention and evaluation is set up with regards to buyer as principal and supplier as agent. In the models, quality prevention is a supplier decision variable and, quality evaluation and transfer payment are buyer decision variables. Focus is on the study of quality evaluation and transfer payment decision in outsourcing under asymmetric information. Maximal principle is used to get the solution to quality evaluation when supplier prevention information is hidden. At last simulation calculation is done concerned with an agricultural machines' company's tractor production outsourcing problem Simulation results under different information backgrounds are analyzed and compared