Managing quality decisions in supply chain
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 1 August 2019
Abstract
Purpose
The purpose of this paper is to develop an optimization model to better allocate cost of quality (COQ) in the supply chain (SC). In addition, the paper provides a roadmap based on COQ that allocates limited given budget among the SC entities.
Design/methodology/approach
This paper presents a comprehensive SC model while introducing six different scenarios, where each scenario minimizes fixed costs and COQ of the SC.
Findings
The results showed that the highest portion of the COQ should be allocated at the retailer echelon while the lowest portion should be kept at the manufacturer echelon. The findings also presented that the retailer should always maintain the highest quality level (QL) compared to the manufacturer and supplier.
Originality/value
Considering prevention, appraisal and failure (PAF) cost model, this research defines the tradeoff among PA, F costs, QL and material flow in the SC network; no work has been published regarding integrating PAF, QL and material flow into SC modeling.
Keywords
Citation
Alglawe, A., Kuzgunkaya, O. and Schiffauerova, A. (2020), "Managing quality decisions in supply chain", International Journal of Quality & Reliability Management, Vol. 37 No. 1, pp. 34-52. https://doi.org/10.1108/IJQRM-09-2018-0255
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited