Study on the quality-control mechanism of dairy supply chain —Based on External Lose Sharing model

In this paper, we presented an External Lose Sharing Coordination model for Double Moral Hazard. After the demonstration, we also completed the Numerical Simulation and Fairness Analysis with the cases of Effect of Additional Compensation, Effect of incoming inspection and outing detection and Effect of the accuracy of the Independent Investigation System. The models can incentive the Manufacturer and the Milk Depot to improve their quality, and better the final Dairy products ultimately. The additional compensation for the consumer and the probability of incoming inspection and outing detection have significant influence on the quality of the Milk Depot and Manufacturer with the exception of the Accuracy of the independent investigation System, also, The fairness criterion is always met when the punishment is based on the external lose sharing.