The Manufacturer´s Trade-Off between Raw Material Quality and Total Cost - With Hog Supply Chains´ Feed Quality Selection Strategy for Example

Product quality of ascension that often leads to cost rise. In a two-stage supply chain, the downstream enterprises should to weigh the costs and product quality, in choosing upstream suppliers product quality. With pig in a supply chain pig- producing enterprise selecting feed quality for example, research on the downstream firms´ raw materials quality selection strategy. By using numerical simulation method, get some very significant conclusions. From the principle of minimum total cost, Pig farms will not only choose the feed on lowest price, but choose the best cost- effective feed. For nutrition suppliers, except to reduce manufacture cost feed besides, still should intensify R&D investment. To raise the scientific and technological content of products, improve the feed efficiency and the feed conversion ratio, to shorten the breeding cycle , so as to reduce the total cost of supply chain, and share the profit.