QUALITY CONTROL AND THE SALES PROCESS.

Hau L. Lee, Charles S. Tapiero

Research output: Contribution to journalArticle

Abstract

A model relating quality control and the sales process (advertising, repeat purchase, and word-of-mouth effects) is developed to evaluate the above relationships. Two special cases, with degenerate and beta distribution for defect items in the production lot, are analyzed in detail. In the former case, analytical results for the optimal quality control schemes are obtained, whereas in the latter, efficient bounds are derived to search for the optimal scheme. It is shown, analytically and numerically, that the sales parameters have significant impact on whether more 'stringent' or 'tighter' quality control is warranted. Future research directions are also discussed.

Original languageEnglish (US)
Pages (from-to)569-587
Number of pages19
JournalNaval research logistics quarterly
Volume33
Issue number4
DOIs
StatePublished - 1986

ASJC Scopus subject areas

  • Engineering(all)

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