Abstract：To study the impact of supply chain structure on supply chain performance, decision models with product price and quality investment are proposed. Equilibrium solutions under decentralized decision models with three different decision sequences are analyzed, and the optimal decision sequences from each firms’ perspective are also discussed. In the first decision sequence, two suppliers invest in the technology to improve their component quality independently and simultaneously, and then set the wholesale price for their components simultaneously. In the second decision sequence, two suppliers decide quality and wholesale price for their component independently and simultaneously. In the third decision sequence, supplier 1 as the leader first decides quality and wholesale price for component 1, supplier 2 follows supplier 1 to make his decision. Results show that centralized decision is better than decentralized decision, and advantages of centralized decision are more outstanding when coefficient of pricesensitive is low and qualitysensitive is high. It also shows that the whole supply chain can achieve the highest profit under the first decision sequence, the second decision sequence is a dominating decision sequence for the manufacture which is the worst option for supplier 1, and the third decision sequence is the worst option for supplier 2.
2012, Vol. 9 
