Abstract There are challenges around the quality control of product and logistics service in the supply chain with the participation of two-echelon logistics service providers. Based on the particularity of supply chain quality under the participation of two-echelon logistics service providers, a quality incentive mechanism is designed, which combines static and dynamic incentive mechanism, individual and team incentive mechanism. The results show that the incentive intensity of retailers to LSI will affect the incentive intensity of LSI to FLSP. Compared with individual incentive mechanism, retailers’ team incentive to manufacturers and LSI reduces the quality effort level of the whole supply chain and retailers’ expected revenue; meanwhile the combination of individual and team incentive mechanism does not improve the quality effort level of manufacturer and LSI. Therefore, the retailer lacks the enthusiasm to provide team incentive mechanism. Compared with static incentive mechanism, dynamic incentive mechanism can improve the quality effort level of manufacturer and the expected revenue of the retailer, when the adjustment coefficient of incentive intensity meets certain conditions. At the same time, the retailer can effectively stimulate the reputation effect and weaken the ratchet effect by changing the adjustment coefficient of incentive intensity, so as to balance the goal of maximizing its expected revenue and maximizing the quality effort level of the whole supply chain, that is, compared with the static incentive mechanism, the dynamic incentive mechanism has more advantages.
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