Supply chain network design based on cost of quality and quality level analysis

Asama Alglawe (Department of Mechanical, Industrial and Aerospace Engineering (MIAE), Faculty of Arts and Science, Concordia University, Montreal, Canada)
Andrea Schiffauerova (Faculty of Arts and Science, Concordia University, Montreal, Canada)
Onur Kuzgunkaya (Faculty of Arts and Science, Concordia University, Montreal, Canada)
Itad Shiboub (Superior Technology School, Université du Québec, Montreal, Canada)

The TQM Journal

ISSN: 1754-2731

Publication date: 8 May 2019

Abstract

Purpose

The purpose of this paper is to explore the impact of the cost of quality (COQ) expenditure allocations on a capacitated supply chain (SC) network.

Design/methodology/approach

This paper proposes a non-linear optimization model which integrates the opportunity cost (OC) (i.e. customer satisfaction cost), into the COQ with consideration of the QL in the supply chain network design decisions. In addition, it examines the effect of considering an investment at each SC echelon to ensure the best overall QL. A numerical example is presented to illustrate the behavior of the model.

Findings

The results show how the QL, COQ and facility location decisions change when incorporating the OC, investments and transportation costs into the SC model.

Originality/value

The novelty of this paper is that it considers the effect of OC, investment at each echelon and transportation costs on SC design by minimizing the overall spending on the COQ. These issues have not been explored, and for that reason, this paper contributes to the understanding of the critical factors that optimizes the SC COQ.

Keywords

Citation

Alglawe, A., Schiffauerova, A., Kuzgunkaya, O. and Shiboub, I. (2019), "Supply chain network design based on cost of quality and quality level analysis", The TQM Journal, Vol. 31 No. 3, pp. 467-490. https://doi.org/10.1108/TQM-11-2018-0151

Download as .RIS

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.