Resource title

Economic models for vendor evaluation with quality cost analysis

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Resource description

Successful vendor-vendee partnership is viewed as an important ingredient for maintaining competitiveness in the current market place. This calls for a careful and comprehensive approach in selecting vendors. The cost of quality (or better phrased as the cost of "unquality") resulting from imperfections of a vendor's incoming input materials is one component of the total costs in the evaluation of vendors. In this paper, 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.

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Resource language

en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp1992/92-40.pdf

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Copyright INSEAD. All rights reserved