Journal of Systems Engineering and Electronics ›› 2012, Vol. 34 ›› Issue (11): 2297-2305.doi: 10.3969/j.issn.1001-506X.2012.11.19

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Beforehand control strategy for outsourcing quality of complex products

LIU Yuan 1,2, HIPEL Keith W3, FANG Zhi-geng2, YUAN Wen-feng2,4   

  1. 1. College of Economics and Management, Zhejiang Normal University, Jinhua 321004, China; 
    2. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China;
    3. Department of Systems Design Engineering, University of Waterloo, Waterloo N2L 3G1, Canada;
    4. Program Management Department, Commercial Aircraft Corporation of China, LTD., Shanghai 200120, China
  • Online:2012-11-20 Published:2010-01-03

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Abstract:

According to a complex product system, a beforehand quality control strategy is developed for the main manufacturer to control the outsourcing quality in a small batch production, even under asymmetric information. The optimum quality reward function and the optimum price discount, which can be considered as the incentive and punitive strategies, can be implemented to induce the supplier selecting the optimum quality desired by the main manufacturer. A numerical case is examined to demonstrate the feasibility and effectiveness of the new model, which furnishes a fresh perspective on the supply chain quality management of a complex product.

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