Product quality improvement model considering quality investment in rework policies and supply chain profit sharing
Authors
Abstract:
The aim of this paper is to develop an optimization model for quality improvement by considering quality investment in rework policies and supply chain profit sharing. To improve product’s quality, the decision of process target and its tolerance is important since it directly affects the defective rate, manufacturing cost, and loss to customer due to the deviation of product from its specification. In this research, two rework policies are considered. In the first policy, the rework is done by using the same manufacturing facility, while in the second policy a new process facility was added for rework. Quality improvement in the supply chain environment is also necessary. Hence, profit sharing system is added in the model to strengthen the commitment of the suppliers in improving component quality. In the system, the manufacturer shares the profits to the supplier if the supplier can meet or exceed the quality target specified by the manufacturer. A comparison is given to determine the best quality improvement policy between those two policies considering profit sharing system. From the results of the optimization, the managers can make economic investment decision economically to correct a defective product through cost optimization model and to choose the best option toward the goal of least unit production cost. By using this model, the decision-maker can evaluate any quality investment in order to achieve significant financial return.
similar resources
Integrated Inventory Model with Controllable Lead Time Involving Investment for Quality Improvement in Supply Chain System
The purpose of this article is to investigate a two-echelon supply chain inventory problem consisting of a single-vendor and a single-buyer with controllable lead time and investment for quality improvements. This paper presents an integrated vendor-buyer inventory model in order to minimize the sum of the ordering cost, holding cost, setup cost, investment for quality improvement and crashing ...
full textintegrated inventory model with controllable lead time involving investment for quality improvement in supply chain system
the purpose of this article is to investigate a two-echelon supply chain inventory problem consisting of a single-vendor and a single-buyer with controllable lead time and investment for quality improvements. this paper presents an integrated vendor-buyer inventory model in order to minimize the sum of the ordering cost, holding cost, setup cost, investment for quality improvement and crashing ...
full textA Two Stage Supply Chain Model with Selling Price Dependent Demand and Investment for Quality Improvement
This paper presents the problem of a vendor-buyer integrated production inventory model for two stage supply chain under investment for quality improvement. The buyer faces as a linear demand, which is assumed to be function of its unit selling price. Total profit is the supply chain performance measure and it is computed as the difference between revenue from sales and total cost, where the la...
full textAccessing information sharing and information quality in supply chain management
This paper empirically examines the impact of environmental uncertainty, intra-organizational facilitators, and interorganizational relationships on information sharing and information quality in supply chain management. Based on the data collected from 196 organizations, multiple regression analyses are used to test the factor impacting information sharing and information quality respectively....
full textQuality Improvement Incentives and Product Recall Cost Sharing Contracts
A companies outsource more product design and manufacturing activities to other members of the supply chain, improving end-product quality has become an endeavor extending beyond the boundaries of the firms’ in-house process capabilities. In this paper, we discuss two contractual agreements by which product recall costs can be shared between a manufacturer and a supplier to induce quality impro...
full textQuality improvement in a supply chain with horizontal competition
Supply quality management is becoming an important part of a manufacturer‟s work with suppliers, and has recently received significant attention from researchers. This paper focuses on a supply chain system that consists of a supplier and two competing manufacturers, examines quality strategies in different cooperative mechanisms and investigates the effects of different cooperative mechanisms ...
full textMy Resources
Journal title
volume 15 issue 4
pages -
publication date 2019-12-01
By following a journal you will be notified via email when a new issue of this journal is published.
Hosted on Doprax cloud platform doprax.com
copyright © 2015-2023