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- Publisher
- Emerald Publishing
- Copyright
- © Emerald Publishing Limited
- ISSN
- 0265-671X
- DOI
- 10.1108/ijqrm-09-2018-0255
- Publisher site
- See Article on Publisher Site
Abstract
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/approachThis paper presents a comprehensive SC model while introducing six different scenarios, where each scenario minimizes fixed costs and COQ of the SC.FindingsThe 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/valueConsidering 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.
Journal
International Journal of Quality & Reliability Management – Emerald Publishing
Published: Jan 6, 2020
Keywords: Supply chain; PAF model; Cost of quality; Quality level; Budget limitations