The impact of the cost of quality on serial supply‐chain network design

2012 ◽  
Vol 50 (19) ◽  
pp. 5544-5566 ◽  
Author(s):  
Krystel K. Castillo-Villar ◽  
Neale R. Smith ◽  
James L. Simonton
2019 ◽  
Vol 31 (3) ◽  
pp. 467-490 ◽  
Author(s):  
Asama Alglawe ◽  
Andrea Schiffauerova ◽  
Onur Kuzgunkaya ◽  
Itad Shiboub

Purpose The purpose of this paper is to explore the impact of the cost of quality (COQ) expenditure allocations on a capacitated supply chain (SC) network. Design/methodology/approach This paper proposes a non-linear optimization model which integrates the opportunity cost (OC) (i.e. customer satisfaction cost), into the COQ with consideration of the QL in the supply chain network design decisions. In addition, it examines the effect of considering an investment at each SC echelon to ensure the best overall QL. A numerical example is presented to illustrate the behavior of the model. Findings The results show how the QL, COQ and facility location decisions change when incorporating the OC, investments and transportation costs into the SC model. Originality/value The novelty of this paper is that it considers the effect of OC, investment at each echelon and transportation costs on SC design by minimizing the overall spending on the COQ. These issues have not been explored, and for that reason, this paper contributes to the understanding of the critical factors that optimizes the SC COQ.


Procedia CIRP ◽  
2015 ◽  
Vol 26 ◽  
pp. 335-340 ◽  
Author(s):  
M. Fareeduddin ◽  
Adnan Hassan ◽  
M.N. Syed ◽  
S.Z. Selim

2018 ◽  
Vol 294 (1-2) ◽  
pp. 677-695 ◽  
Author(s):  
I. Mallidis ◽  
S. Despoudi ◽  
R. Dekker ◽  
E. Iakovou ◽  
D. Vlachos

2020 ◽  
Vol 10 (18) ◽  
pp. 6625
Author(s):  
Farahanim Misni ◽  
Lai Soon Lee ◽  
Hsin-Vonn Seow

This paper considers a location-inventory-routing problem (LIRP) that integrates the strategic, tactical, and operational decision planning in supply chain network design. Both defect and non-defect items of returned products are considered in the cost of reverse logistics based on the economic production quantity model. The objective of the LIRP is to minimize the total cost of location-allocation of established depots, the cost of inventory, including production setup and holding cost, as well as the cost of travelled distance by the vehicles between the open depots and assigned customers. A Hybrid Harmony Search-Simulated Annealing (HS-SA) algorithm is proposed in this paper. This algorithm incorporates the dynamic values of harmony memory considering rate and pitch adjustment rate with the local optimization techniques to hybridize with the idea of probabilistic acceptance rule from simulated annealing, to avoid the local extreme points. Computational experiments on popular benchmark data sets show that the proposed hybrid HS-SA algorithm outperforms a standard HS and an improved HS for all cases.


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