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.
In Libya, Construction and Demolition Waste materials (C&DW) are currently thrown in landfills or illegally dumped. In regions where the C&DW is not landfilled, insufficient C&DW management fails to take advantage of the full value of the materials that could be repurposed for road construction. This research aims to develop a sustainable C&DW management model appropriate to Libya and similar countries. Over 97% of construction in Libya uses cement; therefore, this study focuses on cement production and consumption and creates a simulation to model the parts of the construction industry. This study uses System Dynamics (SD), which is a tool used by stakeholders in policy planning to make better decisions about how to manage C&DW. This study models and predicts C&DW from 2008 until 2030, taking material cost, availability, recyclability and environmental, economic and social impacts into account. The model conforms to historical data from 2008 to 2016 and then becomes a predictive model until 2030; the years following 2011 are particularly critical due to the amount of destruction and the resulting rebuilding. The model shows that having a higher collection budget does not result in better environmental outcomes unless there is money allocated for C&DW recycling. The study quantifies the amount of material in Libya generated from demolition that is not reused; this data becomes a means of analyzing the value of the waste. The model output provides important data (e.g., cement consumption, GDP) for future resource management.
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