Quality control and product servicing: A decision framework

Charles S. Tapiero, Hau L. Lee

Research output: Contribution to journalArticle

Abstract

This paper considers the relationship between quality control and service provision. Since quality control efforts evidently impact the need for servicing, the joint design of both the levels of quality control and service capacity is warranted. A simple framework is developed to deal with this joint design problem. Two cases are considered. For degenerate probability functions of defective items, the quality control scheme becomes that of inspection screening. We show that, by considering the joint problem of inspection and service capacity, the cost function is no longer concave in screening efforts, and thus the optimal screening levels may not be simply 0 or 100%, as indicated by past studies. The capacity issue in fact leads to a higher level of screening in certain cases. For non-degenerate probability functions of defective items, sufficient conditions are derived, whereby the optimal quality control policy and servicing capacity can be readily obtained.

Original languageEnglish (US)
Pages (from-to)261-273
Number of pages13
JournalEuropean Journal of Operational Research
Volume39
Issue number3
DOIs
StatePublished - Apr 14 1989

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Keywords

  • Service capacity provision
  • economic design of quality control
  • inspection screening

ASJC Scopus subject areas

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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