Heuristic procedures to solve a binary nonlinear supply chain model: A case study from the Aerospace industry

Alzaman, Chaher; Ramudhin, Amar; Bulgak, Akif Asil

doi:10.1109/iccie.2009.5223688

Cited by 3 publications

(3 citation statements)

References 11 publications

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“…The Taguchi loss function for when smaller is better has the form shown in Eq. (5). The loss constant coefficient, k, depends on the cost at the specification limits and the width of the specification [33].…”

Section: External Failure Costmentioning

confidence: 99%

A model for supply chain design considering the cost of quality

Castillo-Villar

Smith

Simonton

2012

Applied Mathematical Modelling

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a b s t r a c tRecent studies have shown that the cost of quality (COQ) is of more strategic and economic importance than previously conceived. Whereas previous works have applied COQ as an internal performance measure within companies, the purpose of this paper is to present a model for supply chain design that computes the COQ as a global performance measure for the entire supply chain. In addition, rather than assume an exogenously given COQ curve, our model computes COQ in terms of internal operational decisions such as the error rate at inspection and fraction defective at manufacturing. The model can be used to design a logistic route that achieves a minimum total cost while maintaining an overall quality level and to evaluate the impact of investment in quality to increase overall profits. The behaviour of the model is illustrated with numerical examples that show how the COQ function changes depending on various parameters.

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Section: External Failure Costmentioning

confidence: 99%

A model for supply chain design considering the cost of quality

Castillo-Villar

Smith

Simonton

2012

Applied Mathematical Modelling

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“…Later, Alzaman et al (2009) proposed a heuristic approach to solve a mathematical model containing a quadratic COQ function. They state that a quadratic COQ function can be incorporated in the SCND with binary variables and solved efficiently.…”

Section: Literature Review On the Coqmentioning

confidence: 99%

Supply chain network design based on cost of quality and quality level analysis

Alglawe

Schiffauerova

Kuzgunkaya

et al. 2019

TQM

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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.

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“…When COQ is considered in their model, the solution increases approximately by 16 percent in costs. Another work directed toward integrating COQ in the SC was introduced by Alzaman et al (2009). They establish a mathematical model to incorporate a known quadratic COQ function integrating a defect ratio at all SC nodes.…”

Section: Literature Reviewmentioning

confidence: 99%

Managing quality decisions in supply chain

Alglawe

Kuzgunkaya

Schiffauerova

2019

IJQRM

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Purpose The purpose of this paper is to develop an optimization model to better allocate cost of quality (COQ) in the supply chain (SC). In addition, the paper provides a roadmap based on COQ that allocates limited given budget among the SC entities. Design/methodology/approach This paper presents a comprehensive SC model while introducing six different scenarios, where each scenario minimizes fixed costs and COQ of the SC. Findings The results showed that the highest portion of the COQ should be allocated at the retailer echelon while the lowest portion should be kept at the manufacturer echelon. The findings also presented that the retailer should always maintain the highest quality level (QL) compared to the manufacturer and supplier. Originality/value Considering prevention, appraisal and failure (PAF) cost model, this research defines the tradeoff among PA, F costs, QL and material flow in the SC network; no work has been published regarding integrating PAF, QL and material flow into SC modeling.

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Heuristic procedures to solve a binary nonlinear supply chain model: A case study from the Aerospace industry

Cited by 3 publications

References 11 publications

A model for supply chain design considering the cost of quality

A model for supply chain design considering the cost of quality

Supply chain network design based on cost of quality and quality level analysis

Managing quality decisions in supply chain

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