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EOQ principle analysis of benefit consistency of supply and demand based on comprehensive cost of quality

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  • Yanlong Cao
  • Kui Zhao
  • Jiangxin Yang
  • Jiayan Guan
  • Bo Li

Abstract

This paper presents a conceptual framework for economics of quality (EOQ) principle analysis based on comprehensive cost of quality (CCQ) which improved the traditional cost of quality (COQ) model. Firstly, the paper establishes the CCQ model. Then, relationship schemes between quality level and relevant costs are given. At last, the value engineering is introduced into the process of EOQ principle analysis and the mathematical model of EOQ principle analysis is established by compositing the value orientation from both enterprise and customer. The most appropriate quality level interval can be gotten by the EOQ model which is helpful for enterprises to select the most suitable quality level in market competition environment, and maximise revenue for both sides of supply and demand.

Suggested Citation

  • Yanlong Cao & Kui Zhao & Jiangxin Yang & Jiayan Guan & Bo Li, 2012. "EOQ principle analysis of benefit consistency of supply and demand based on comprehensive cost of quality," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 25(4), pages 213-223.
    • Handle: RePEc:ids:ijmtma:v:25:y:2012:i:4:p:213-223
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    Cited by:

    1. Bock, Stefan & Pütz, Markus, 2017. "Implementing Value Engineering based on a multidimensional quality-oriented control calculus within a Target Costing and Target Pricing approach," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 146-158.

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