Business Logistics and the Quality Loss Function
Larson, Paul D., Journal of Business Logistics
The quality management literature tends to focus on intra-organizational concepts for quality improvement, e.g., the "house of quality,"(1) the quality "spiral,"(2) and the Taguchi "quality loss function." However, this literature neglects the product quality impact on inter-organizational business logistics functions. Chapman and Carter suggest that both supplier inventory and customer inventory are negatively related to product quality.(3) Unfortunately, neither hypothesis is supported by its empirical data on 89 products, apparently due to small variability in the product quality measure.
This paper develops analytical relationships between product quality, supplier (origin) …
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Publication information: Article title: Business Logistics and the Quality Loss Function. Contributors: Larson, Paul D. - Author. Journal title: Journal of Business Logistics. Volume: 13. Issue: 1 Publication date: January 1, 1992. Page number: 125+. © Council of Logistics Management 2008. Provided by ProQuest LLC. All Rights Reserved.
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