Comparative research on product quality inspection strategy in supply chain

CAO Yu, LI Qingsong, HU Hanli

Systems Engineering - Theory & Practice ›› 2019, Vol. 39 ›› Issue (1) : 111-125.

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Systems Engineering - Theory & Practice ›› 2019, Vol. 39 ›› Issue (1) : 111-125. DOI: 10.12011/1000-6788-2018-0521-15

Comparative research on product quality inspection strategy in supply chain

  • CAO Yu, LI Qingsong, HU Hanli
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Abstract

This paper studies a supply chain with one supplier and one buyer and explores the effect of complete inspection, sampling inspection, batch sampling inspection and combination strategy on the product quality control based on newsvendor model considering quality uncertainty and inspection error in decentralized and centralized supply chain. The results show that the increase of defective rate will reduce the retailer to order products, but will increase the order quantities and profits of the retailer under the combination strategy; and it is beneficial for the retailer under the complete inspection strategy in the centralized supply chain. Through comparative analysis of strategies:in the decentralized supply chain, if the defective rate is low, batch sampling strategy is optimal, but the combination strategy will be better with the improvement of the defective rate; in the centralized supply chain, the complete inspection strategy will be better. In addition, the selection of retailer quality control strategy is influenced by many factors, and the optimal strategy is not the same, but these factors will not change the trend of retailers' profits to change with the defective rate.

Key words

quality control / complete inspection strategy / sampling inspection strategy / batch sampling inspection strategy / combination strategy

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CAO Yu , LI Qingsong , HU Hanli. Comparative research on product quality inspection strategy in supply chain. Systems Engineering - Theory & Practice, 2019, 39(1): 111-125 https://doi.org/10.12011/1000-6788-2018-0521-15

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Funding

National Natural Science Foundation of China (71573281, 71703122); National Social Science Foundation of China (16BJY079); the Fundamental Research Funds for the Central Universities (531107051061)
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