Control Mechanism Design for Outbound Logistics Based on Credit Evaluation

Many manufacturers suffer from large amounts of return goods and account receivable in consequence of partial pursuit of high distribution achievements. Considering the cooperation pattern between manufacturers and downstream distributors, a distribution model with one sales representative and multi distributors is established utilizing game theory. The model is validated by the accordance of theoretical analysis and practical instance. A control mechanism on outbound logistics, with the process of "behavior feedback-credit evaluation-outbound logistics control" that makes distributor\´s behaviors have influence on his profit, is designed based on credit evaluation. Theoretical analysis shows that the control mechanism can change the rules of the game and coordinate supply chain partners. The control mechanism has been well applied in supply chain management system of XXX Knitting group and is proved to be effective on improving collective profit of the supply chain