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Evaluation of an integrated supplier‐buyer quality‐control system
Author(s) -
Peters Michael H.,
Vaughan Timothy S.
Publication year - 1992
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/1520-6750(199202)39:1<79::aid-nav3220390107>3.0.co;2-v
Subject(s) - rework , control (management) , computer science , quality (philosophy) , variable (mathematics) , operations research , process (computing) , sampling (signal processing) , operations management , acceptance sampling , reliability engineering , risk analysis (engineering) , process management , business , economics , engineering , mathematics , artificial intelligence , mathematical analysis , philosophy , epistemology , filter (signal processing) , computer vision , embedded system , operating system , pareto principle
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.