The purpose of this paper is to construct a theoretical framework which allows a manufacturer to examine the tradeoffs between pricing, reliability, design and quality control issues. In particular, the paper investigates effects of risk aversion on the relative prominence of one or the other policy instruments. In addition, the results of extensive numerical analyses are presented relating basic managerial guidelines with price, reliability and quality control.
- quality control
ASJC Scopus subject areas
- Computer Science(all)
- Modeling and Simulation
- Management Science and Operations Research
- Information Systems and Management