Economic Models for Vendor Evaluation with Quality Cost Analysis
Economic Models for Vendor Evaluation with Quality Cost Analysis
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DOI:
10.1287/mnsc.42.11.1531
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发表时间:
1996-11
影响因子:
5.4
通讯作者:
George Tagaras;Hau L. Lee
中科院分区:
文献类型:
--
作者:
George Tagaras;Hau L. Lee
Successful vendor-vendee relationship is viewed as an important ingredient for maintaining competitiveness in the current marketplace. This calls for a careful and comprehensive approach in selecting vendors. The cost of quality or better phrased as the cost of "unquality" resulted from imperfections of a vendor's incoming input materials is one component of the total costs in the evaluation of vendors. The purpose of this paper is to show that looking at only one dimension of the quality cost is not sufficient and to highlight the importance of having a high quality internal process. We explore the relationship between the vendor's quality cost, the vendor's input quality, and the imperfections of the manufacturing process. We analyze the properties of the resulting quality cost model, and draw managerial implications in the selection of vendors.