Investment decisions for improving quality along supply chains. Issue 3 (3rd July 2017)

• Record Type: Journal Article
• Authors: Man, Yi; Huang, Wenpo; Zhao, Wenhui; Jiang, Wei
• Is Part Of: Journal of management analytics. Volume 4:Issue 3(2017)
• Page Start: 240
• Page End: 257
• Publication Date: 2017-07-03
• Subjects: learning curve -- quality management -- supply chain; Management -- Mathematical models -- Periodicals; Management -- Periodicals; Management -- Mathematical models; Management; Periodicals; 658.4033
• DOI: 10.1080/23270012.2017.1357508
• Languages: English
• ISSNs: 2327-0012

Abstract

Abstract : In this paper, we consider a supply chain with one supplier and one retailer who jointly make their efforts to improve quality along supply chain. Investment decisions of the retailer and the supplier as well as order quantity of the retailer are made consequently in order to maximize each party's own profit. From analytical results, we find that the retailer only places the order if the joint investment exceeds certain threshold. The region in which the supplier and retailer make joint efforts in the investment is provided when the demand is exponentially distributed. Numerical studies are given to reveal the effect of the parameters.