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Evaluation of an integrated supplier‐buyer quality‐control system

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  • Michael H. Peters
  • Timothy S. Vaughan

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.

Suggested Citation

  • Michael H. Peters & Timothy S. Vaughan, 1992. "Evaluation of an integrated supplier‐buyer quality‐control system," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(1), pages 79-96, February.
    • Handle: RePEc:wly:navres:v:39:y:1992:i:1:p:79-96
    DOI: 10.1002/1520-6750(199202)39:13.0.CO;2-V
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    References listed on IDEAS

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    1. James P. Monahan, 1984. "A Quantity Discount Pricing Model to Increase Vendor Profits," Management Science, INFORMS, vol. 30(6), pages 720-726, June.
    2. Herbert Moskowitz & William L. Berry, 1976. "A Bayesian Algorithm for Determining Optimal Single Sample Acceptance Plans for Product Attributes," Management Science, INFORMS, vol. 22(11), pages 1238-1250, July.
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    Cited by:

    1. Timothy S. Vaughan, 1994. "The applicability of acceptance sampling with respect to process stability and control," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(5), pages 635-651, August.

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