Browse > Article

Design of A Quality System for Multi-Products with the Fixed Costs for Products Servicing  

Kim Sung Chul (덕성여자대학교 경영학과)
Publication Information
Journal of the Korean Operations Research and Management Science Society / v.29, no.4, 2004 , pp. 61-72 More about this Journal
Abstract
In this paper, we design sampling inspections and service capacities simultaneously for multi-products. Particularly, we extend Kim(2003) by introducing the fixed cost of providing services. We show that, due to the fixed cost considered, the cost function of a product is no longer linear or convex in terms of the level of service provision, and the total inspection is prefered to the small level of service capacity which results in high burden of the fixed cost. And we develop a simple framework to deal with this joint design problem for a product. Also we consider the problem of allocating the given number of the total service capacities among products. A dynamic programming algorithm is developed to determine the optimal allocation which minimizes the overall total cost of the system and the optimal allocation can be obtained with the considerably smaller computations than the total number of possible allocations. The results can be used to support planning decisions and to aid the joint design of inspections and service capacities for products.
Keywords
Multi-Products; Fixed Cost; Joint Design; Sampling Inspection; Service Capacity;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Business Week, 'Quality : The U.S. Drives to Catch up, Special Report,' Business Week 9(November 1982), pp.66-88
2 Fortune, 'Ford's Drive for Quality,' Fortune(April 1983), pp.62-70
3 Yao, D.D. and S. Zheng, 'Sequential Inspection under Capacity Constraints,' Operations Research, Vol.47, No.3(1999), pp. 410-421   DOI   ScienceOn
4 Crosby, P.B., Quality is Free, New American Library, New York(1980)
5 Johnson, L.A. and D.C. Montgomery, Operations Research in Production Planning, Scheduling, and Inventory Control, John Wiley & Sons, Inc., 1974
6 Chen, J., D.D. Yao, and S. Zheng, 'Quality Control for Products with Warranty,' Operations Research, Vol.46, No.1(1998), pp. 107-115   DOI   ScienceOn
7 Gallego, G., 'Reduced Production Rates in the Economic Lot Scheduling Problem,' International Jpurnal of Production Research, Vol.31, No.5(1993), pp.1035-1046   DOI   ScienceOn
8 김성철, '복수제품의 품질검사 및 서비스시스템의 설계', '한국경영과학회지', 제28권, 제3호 (2003), pp.49-60
9 Tapiero, C.S. and H.L. Lee, 'Quality Control and Product Servicing : A Decision Framework,' European Journal of Operational Research, Vol.39(1989), pp.261-273
10 Shimp, T.A. and W.O. Bearden, 'Warranty and Other Extrinsic Cue Effects on Consumer's Risk Perceptions,' Journal of Consumer Research, Vol.9(1982), pp.38-46