Non-linear programming model for cost minimisation in a supply chain, including non-quality and inspection costs

Gina M. Galindo-Pacheco, Carlos D. Paternina-Arboleda, Rodrigo A. Barbosa-Correa and Humberto Llinás-Solano

International Journal of Operational Research, 2012, vol. 14, issue 3, 301-323

Abstract: Satisfaction of customers' quality expectations is a fundamental attribute for any company willing to succeed in a competitive environment. The achievement of such expectations typically involves the implementation of costly measures like quality inspection procedures. From an economic point of view, the optimal decision about whether to implement or not this type of measures should be the result of a balance between the costs associated with their application and the potential economic losses caused by failing to satisfy customers' quality levels. In this paper, we develop a model that addresses to attain such balance. A distinguishing feature of our work is that it combines in a single model logistic and quality costs. Our model provides a set of inspection plans to be implemented for both incoming and outgoing units, as well as the values of the parameters for such inspection plans. A solution methodology is presented as well as a case study. Possible future research directions are offered.

Keywords: LASP; lot acceptance sampling plan; CSP; continuous sampling plans; AOQL; average outgoing quality level; SCM; supply chain management; AQL; acceptance quality level; LTPD; lot tolerable percent defective; nonlinear programming; cost minimisation; non-quality costs; inspection costs; inspection planning; quality control. (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=47092 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijores:v:14:y:2012:i:3:p:301-323

Access Statistics for this article

More articles in International Journal of Operational Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().