Abstract: With the two-echelon supply chain consisting of a single manufacturer and a single supplier as its research object, the manufacturer and the supplier's optimal quality management strategy, revenue and the total revenue of the entire supply chain in four different game situations are anylyzed. The results showed that when the income distribution between the manufacturer and the supplier met certain conditions, it was a Pareto improvement for the manufacturer, the supplier and the whole supply chain system from quality management Nash non-cooperative game situation, to weak incentive Stackelberg game situation, to the strong incentive Stackelberg game situation, and finally to the cooperation quality management game situation. Therefore, the cooperation quality management game situation was the ideal situation during the process of supply chain quality management. In order to promote the realization of the situation effectively, Nash bargaining model was applied to analyze the allocation of the remaining profits in the supply chain system between the parties. Finally, based on the simulation data got from the survey on the supply chain of an electric fan manufacturer, a numerical example was given to verify the results of the theoretical derivation.

Key words: supply chain, quality control, quality improvement, differential game, encourage