Evaluation of an integrated supplier‐buyer quality‐control system

Michael H. Peters and Timothy S. Vaughan

Naval Research Logistics (NRL), 1992, vol. 39, issue 1, 79-96

Abstract: In this article, a quality‐control design framework that employs information for the supplier‐buyer system is modeled. Significant operational savings may be obtained by using the integrated plans developed under this framework. This is especially true when the cost of a defective is high, and the variable sampling and rework costs are low. Analysis of the interaction of defective, rework, and variable sampling costs reveals that the savings are the result of a shift of control effort from the process‐control to the lot‐acceptance stage, which is the consequence of tradeoffs involving both stages. The managerial impact of adopting integrated plans is discussed.

Date: 1992
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https://doi.org/10.1002/1520-6750(199202)39:13.0.CO;2-V

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Persistent link: https://EconPapers.repec.org/RePEc:wly:navres:v:39:y:1992:i:1:p:79-96

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