Forecasting Moral Hazards in Supply Chain

For forecasting the moral hazards more accurately, and controlling them effectively, the categories of the moral hazards are classified, denoted by two group state vectors. The classification work is based on the 4 levels structure of the moral hazards of the supply chain. Then, a warning model of supply chain moral hazards warning system is constructed to forecast the quantity of the moral hazards in supply chain. The parameters of the model are estimated by the grey theory model, GM(1, 1) and GM (1, n), which decreasing the subjectivity of the state vectors setting.