Published: 2008-02-15
ISBN:
ISSN: 1650-3686 (print), 1650-3740 (online)
Minimizing the sum of quality costs related to limited resources forms one of the main determinants in a company’s success. In production systems; resources such as labors inspecting items produced; labors training personnel to prevent items from erroneous results; labors reworking on erroneous items; labors dealing with complaints about erroneous products etc. are limited. Hence; it is important to find out the most suitable mix of conformance and nonconformance costs of products in allocation of the scarce resources.
In literature; the cost of poor quality as a result of imperfections of a vendor’s incoming input materials and the errors of the manufacturing process were investigated (Tagaras; 1996). An optimization model including appointment of the cost of quality between the two parties as buyers and suppliers was also analyzed (Baiman; 2000).
However; models optimizing total quality costs including each quality cost components has not been studied extensively. In this study; a generalized optimization model for a multistage production system based on quality costs as conformance and nonconformance costs has been developed.
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Tagaras; G. and Lee; H.L.; (1996) “Economic Models for Vendor Evaluation with Quality Cost Analysis”; Management Science; 42 (11) ; pp 1531-1543.
