Service Supply Chain Optimization Considering Moral Hazard and Additional Capacity

DOI

10.2991/978-94-6239-766-8_12How to use a DOI?

Keywords

Service supply chain; Additional capacity; Moral hazard; Quality control; Risk sharing

Abstract

Service supply chains are characterized by demand uncertainty and information asymmetry, which may lead to moral hazard and inefficient capacity allocation. To address these issues, this study develops a service supply chain optimization model integrating moral hazard prevention and additional capacity decisions under a centralized decision-making framework. The model considers a service integrator and a service supplier, where the integrator adopts monitoring and penalty mechanisms to reduce opportunistic behaviors, while the supplier establishes additional capacity to respond to uncertain demand. Mixed-strategy Nash equilibrium analysis is employed to derive the optimal monitoring probability, supplier behavior probability, and additional capacity decisions. Numerical results indicate that centralized decision-making combined with additional capacity investment improves overall system performance. Specifically, under the numerical setting, the optimal additional capacity is 43.75 units and the service supply chain reaches its maximum profit of 6901. Sensitivity analysis further shows that penalty intensity, monitoring cost, profit-sharing ratio, and additional capacity cost significantly influence equilibrium decisions and total profit. The findings provide managerial insights for improving service quality and resilience in service supply chains.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Min Li
PY  - 2026
DA  - 2026/09/04
TI  - Service Supply Chain Optimization Considering Moral Hazard and Additional Capacity
BT  - Proceedings of the 2026 6th International Conference on Education, Information Management and Service Science  (EIMSS 2026)
PB  - Atlantis Press
SP  - 119
EP  - 127
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6239-766-8_12
DO  - 10.2991/978-94-6239-766-8_12
ID  - Li2026
ER  -