Abstract: This papers mainly study the quality control policy in the single period decentralized closed-loop supply chain composed by a manufacturer and a retailer.Based on the three stage.dynamic game theory,we consider the retailer,which as a leader in the game,how decides the penalty rate of defectively used products and the inspection rate on incoming items from retailer,and the retailer how decides the return rate of used products and the inspection rate on incoming items from consumer.In addition,we build the model to solve this problem and discuss the cost of supervising and the impact of different defective rate of used products on the decision makings of both the manufacturer and the retailer by mathematics example.

Key words: dynamic game, closed-loopsupply chain, quality control