An optimal control model with defective products and goodwill damages

Pietro De Giovanni ()
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Pietro De Giovanni: ESSEC Business School

Annals of Operations Research, 2020, vol. 289, issue 2, No 14, 419-430

Abstract: Abstract In this paper, we formulate an optimal control model that considers the negative effect of product failures on goodwill. Differently from the models developed in the literature, we replicate Juran’s (Quality control handbook, McGraw Hill, New York, 1979) and Crosby’s (Quality is free, McGraw-Hill, New York, 1979) conformance quality models. Our findings suggest that a total quality management orientation should always consider an appraisal and prevention strategy to avoid the negative effect of defects on goodwill.

Keywords: Conformance quality; Goodwill; Total quality management; Optimal control (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10479-019-03176-4

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