International Journal of Decision Sciences, Risk and Management http://www.inderscience.com/browse/index.php?journalID=254&year=2012&vol=4&issue=1/2 Inderscience Publishers Ltd en-uk International Journal of Decision Sciences, Risk and Management 1753-7169 1753-7177 © 2012 Inderscience Publishers Ltd editor@inderscience.com https://www.inderscience.com/images/files/coverImgs/ijdsrm_scoverijdsrm.jpg http://www.inderscience.com/browse/index.php?journalID=254&year=2012&vol=4&issue=1/2 http://www.inderscience.com/link.php?id=46602 The 'strategic' management of technical integrity has become a high profile subject matter over recent years within inspection and maintenance of assets in the process industry. The assets such as production and process facilities require being optimised, prioritised and cost-effective inspection and maintenance, depending on whether they are at the beginning or end of their design life. In both cases, it is vital to ensure that sufficient condition monitoring data from all relevant sources are collated and analysed as a part in a planned scheme of inspection and maintenance. This is largely driven by certifying authority requirements, sound mechanical and corrosion engineering principles as well as inspection and maintenance approaches, indicated in a plant strategy. This manuscript suggests a model to execute plant strategy using analytic hierarchy process method. The model indicates the incorporation of requirements specified in a plant strategy for reaching optimised, prioritised and cost-effective outcome. A decision model for executing plant strategy: maintaining the technical integrity of petroleum flowlines
R.M. Chandima Ratnayake
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 1 - 24
The 'strategic' management of technical integrity has become a high profile subject matter over recent years within inspection and maintenance of assets in the process industry. The assets such as production and process facilities require being optimised, prioritised and cost-effective inspection and maintenance, depending on whether they are at the beginning or end of their design life. In both cases, it is vital to ensure that sufficient condition monitoring data from all relevant sources are collated and analysed as a part in a planned scheme of inspection and maintenance. This is largely driven by certifying authority requirements, sound mechanical and corrosion engineering principles as well as inspection and maintenance approaches, indicated in a plant strategy. This manuscript suggests a model to execute plant strategy using analytic hierarchy process method. The model indicates the incorporation of requirements specified in a plant strategy for reaching optimised, prioritised and cost-effective outcome.

]]> 10.1504/IJDSRM.2012.046602 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 1 - 24 R.M. Chandima Ratnayake Department of Mechanical and Structural Engineering and Materials Science (IKM), Faculty of Science and Technology, University of Stavanger UiS, N-4036, Stavanger, Norway strategy execution technical integrity analytical hierarchy process AHP decision models plant strategies petroleum flowlines strategic management asset inspection asset maintenance process industries production facilities process facilities optimisation prioritisation cost-effectiveness design life condition data monitoring data planned schemes certifying authorities mechanical engineering corrosion engineering optimised outcomes prioritised outcomes cost-effective outcomes decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 1 24 2012-05-02T23:20:50-05:00 http://www.inderscience.com/link.php?id=46613 Risk mitigation is an integral facet of project risk management for infrastructure projects. Complex infrastructure transportation projects like construction of underground corridor for metro rail operations are subject to various risks and uncertainties through all the phases of the project like feasibility, development, execution and operation. Project risks primarily deal with the risks and uncertainties pertaining to project schedule and cost, particularly for the feasibility, development and execution phases. Maximum risks occur during the execution phase. These risks need to be mitigated through the risk mitigation tools. Carrying out proper risk management process would enable the project authorities to identify a number of options for risk mitigation. This paper aims to develop a tool through decision tree analysis (DTA) to enable decision making about the most feasible option that the project authorities should adopt so that the project is executed most effectively and economically within the stipulated time and cost frame. Decision tree analysis for project risk mitigation options for underground metro rail project
Debasis Sarkar
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 25 - 37
Risk mitigation is an integral facet of project risk management for infrastructure projects. Complex infrastructure transportation projects like construction of underground corridor for metro rail operations are subject to various risks and uncertainties through all the phases of the project like feasibility, development, execution and operation. Project risks primarily deal with the risks and uncertainties pertaining to project schedule and cost, particularly for the feasibility, development and execution phases. Maximum risks occur during the execution phase. These risks need to be mitigated through the risk mitigation tools. Carrying out proper risk management process would enable the project authorities to identify a number of options for risk mitigation. This paper aims to develop a tool through decision tree analysis (DTA) to enable decision making about the most feasible option that the project authorities should adopt so that the project is executed most effectively and economically within the stipulated time and cost frame.

]]> 10.1504/IJDSRM.2012.046613 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 25 - 37 Debasis Sarkar Construction and Project Management Department, Faculty of Technology, CEPT University, Ahmedabad – 380009, Gujarat, India decision trees project risks risk mitigation underground corridors Delhi Metro Rail Corporation DMRC India underground railways public transport decision tree analysis infrastructure projects transportation projects uncertainty project schedules project costs feasibility phases development phases execution phases maximum risks project authorities option identification decision making feasible options time frames cost frames decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 25 37 2012-05-02T23:20:50-05:00 http://www.inderscience.com/link.php?id=46643 The economic crisis of Europe has realigned the notion of a nation's reputation (or its branding) in a prominent way. Using the case of Greece as an example, we interpret the Greek crisis from the fresh perspective of reputation risk management. From this perspective, we show that the Greek crisis, on one hand is deeper and more holistic than the pre-crisis dim macroeconomic outlook would suggest. From the other hand, we suggest that the crisis could have been avoided had reputation risk management been encapsulated as a mechanism for guiding Greece's decision-makers. We infer that, the lack of the equivalent of national-level reputation risk management techniques at the governance echelons is one of the root causes of the crisis and the key catalyst for the rapid escalation of what at first instance appeared to be bad nationwide public financial practices and policy making into a European and nearly global financial event. A reputation risk perspective on the Greek crisis
Nikitas-Spiros Koutsoukis; Pantelis Sklias; Spyros Roukanas
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 38 - 57
The economic crisis of Europe has realigned the notion of a nation's reputation (or its branding) in a prominent way. Using the case of Greece as an example, we interpret the Greek crisis from the fresh perspective of reputation risk management. From this perspective, we show that the Greek crisis, on one hand is deeper and more holistic than the pre-crisis dim macroeconomic outlook would suggest. From the other hand, we suggest that the crisis could have been avoided had reputation risk management been encapsulated as a mechanism for guiding Greece's decision-makers. We infer that, the lack of the equivalent of national-level reputation risk management techniques at the governance echelons is one of the root causes of the crisis and the key catalyst for the rapid escalation of what at first instance appeared to be bad nationwide public financial practices and policy making into a European and nearly global financial event.

]]> 10.1504/IJDSRM.2012.046643 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 38 - 57 Nikitas-Spiros Koutsoukis; Pantelis Sklias; Spyros Roukanas Department of Political Science and International Relations, University of Peloponnese, Dervenakion & Adeimantou, Corinth, GR-201 00, Greece. ' Department of Political Science and International Relations, University of Peloponnese, Dervenakion & Adeimantou, Corinth, GR-201 00, Greece. ' Department of International and European Studies, University of Piraeus, Office 204, G. Lampraki 126, Piraeus, Greece reputation risk Greece Europe economic crises nation branding holistic crises macroeconomics decision-makers EU European Union national-level reputations governance echelons root causes key catalysts nationwide practices public practices financial practices policy making decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 38 57 2012-05-02T23:20:50-05:00 http://www.inderscience.com/link.php?id=46605 The purpose of this paper is to consider the utilities of using value at risk (VaR) as an explanatory factor of stock returns in addition to the Fama-French risk factors over different investment periods. In order to describe the relationships between factors and stock returns and to examine the explanatory power of the four factor model at different timescales, we exploit the properties of the multi-resolution analysis (MRA) based on maximal overlap discrete wavelet transform (MODWT). The four factor model proposed by Turan G. Bali and Nusret Cakici illustrates well the cross-sectional returns while the timescale increases. The portfolio returns are more sensitive to the market risk and size risk. The portfolio risk effect, measured by the VaR, is handed-over in question because its weakness and the addressed criticism following the current financial crisis. Multiscale Fama-French and VaR explanatory factor analysis: evidence to the French market
Anyssa Trimech; Saloua Benammou
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 58 - 76
The purpose of this paper is to consider the utilities of using value at risk (VaR) as an explanatory factor of stock returns in addition to the Fama-French risk factors over different investment periods. In order to describe the relationships between factors and stock returns and to examine the explanatory power of the four factor model at different timescales, we exploit the properties of the multi-resolution analysis (MRA) based on maximal overlap discrete wavelet transform (MODWT). The four factor model proposed by Turan G. Bali and Nusret Cakici illustrates well the cross-sectional returns while the timescale increases. The portfolio returns are more sensitive to the market risk and size risk. The portfolio risk effect, measured by the VaR, is handed-over in question because its weakness and the addressed criticism following the current financial crisis.

]]> 10.1504/IJDSRM.2012.046605 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 58 - 76 Anyssa Trimech; Saloua Benammou Computational Mathematics Laboratory, Faculty of Law, Economic, and Political Sciences, Sousse University, Rue 2 mars, Kheniss, Monastir 5011, Sousse, Tunisia. ' Computational Mathematics Laboratory, Faculty of Law, Economic, and Political Sciences, Sousse University, Rue 2 mars, Kheniss, Monastir 5011, Sousse, Tunisia multifactor asset pricing models value at risk VaR three factor models Eugene Fama Kenneth French stock returns asset pricing portfolio management risk factors MRA multiresolution analysis explanatory factor analysis France investment periods explanatory powers four factor models MODWT maximal overlap discrete wavelet transform Turan Bali Nusret Cakici cross-sectional returns timescales portfolio returns market risk size risk portfolio risk effects financial crises decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 58 76 2012-05-02T23:20:50-05:00 http://www.inderscience.com/link.php?id=46610 Risk and uncertainty have been found to be one of the indispensable parts of any manufacturing or service supply chain. No matter how strong is the supply chain, risk and uncertainty come into the picture by disrupting the operational flow. The situation further gets complicated, if the nature of the material the supply chain deals in, is perishable requiring conditioned transportation and storage. In this context, dairy-food supply chain is not a deviation. The empirical paper describes the risks and uncertainties of a dairy-food supply chain case in India. The study involves all the stakeholders in the system to identify the potential risks for the entire chain and strategies to address the same. The data, from 1,063 sample respondents, at different levels of the supply chain, are collected and assessed to detect major operational risks for the dairy industry. In total, 15 significant risks are identified throughout the supply chain of which eight are assessed to be critical ones. Strategies to minimise the high risks are also mentioned at different levels so as to increase the efficiency of the supply chain. Evaluating supply chain risk in Indian dairy industry: a case study
Pramod Kumar Mishra; B. Raja Shekhar
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 77 - 91
Risk and uncertainty have been found to be one of the indispensable parts of any manufacturing or service supply chain. No matter how strong is the supply chain, risk and uncertainty come into the picture by disrupting the operational flow. The situation further gets complicated, if the nature of the material the supply chain deals in, is perishable requiring conditioned transportation and storage. In this context, dairy-food supply chain is not a deviation. The empirical paper describes the risks and uncertainties of a dairy-food supply chain case in India. The study involves all the stakeholders in the system to identify the potential risks for the entire chain and strategies to address the same. The data, from 1,063 sample respondents, at different levels of the supply chain, are collected and assessed to detect major operational risks for the dairy industry. In total, 15 significant risks are identified throughout the supply chain of which eight are assessed to be critical ones. Strategies to minimise the high risks are also mentioned at different levels so as to increase the efficiency of the supply chain.

]]> 10.1504/IJDSRM.2012.046610 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 77 - 91 Pramod Kumar Mishra; B. Raja Shekhar EADS-SMI Chair for Sourcing and Supply Management, D-Block (2nd Floor), Indian Institute of Management Bangalore, Bannerghatta Road, Bangalore, PIN – 560 076, Karnataka, India. ' School of Management Studies, University of Hyderabad, Central University P.O, Gachibowli, Hyderabad, PIN – 500 046, Andhra Pradesh, India SCM supply chain management dairy industry managerial implications high risks India risk evaluation uncertainty operational flows flow disruption perishable goods conditioned transportation conditioned storage dairy foods stakeholders potential risks risk strategies operational risks significant risks risk identification critical risks risk assessment risk minimisation efficiency Orissa State Cooperative Milk Producers Federation food decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 77 91 2012-05-02T23:20:50-05:00 http://www.inderscience.com/link.php?id=46614 Each of two firms has a resource that can be converted into safety versus productive investment in the first stage, with Bertrand competition on price in the second stage of a two-stage game. The firms produce differentiated products in a risky environment. If risks are negligible, investing more in safety decreases the price, and producing more increases the price. The results depend on whether risks get reduced concavely or convexly. With concave (convex) risk reduction, higher safety investment by the competitor causes higher (lower) own safety investment. With concave (convex) risk reduction, lower firm loyalty by consumers implies lower (higher) safety investment, higher product substitutability implies higher (lower) safety investment, and more adverse implications of the competitor's productive investment on the demand intercept of the firm implies lower (higher) safety investment. When each firm independently maximises profit in a Nash equilibrium, safety investment is lower than when a social planner maximises social welfare and when maximising joint industry profits. The impact of the income, substitution, and interdependence effects on safety investment and price is finally analysed. Production versus safety in a risky competitive industry
Kjell Hausken
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 92 - 107
Each of two firms has a resource that can be converted into safety versus productive investment in the first stage, with Bertrand competition on price in the second stage of a two-stage game. The firms produce differentiated products in a risky environment. If risks are negligible, investing more in safety decreases the price, and producing more increases the price. The results depend on whether risks get reduced concavely or convexly. With concave (convex) risk reduction, higher safety investment by the competitor causes higher (lower) own safety investment. With concave (convex) risk reduction, lower firm loyalty by consumers implies lower (higher) safety investment, higher product substitutability implies higher (lower) safety investment, and more adverse implications of the competitor's productive investment on the demand intercept of the firm implies lower (higher) safety investment. When each firm independently maximises profit in a Nash equilibrium, safety investment is lower than when a social planner maximises social welfare and when maximising joint industry profits. The impact of the income, substitution, and interdependence effects on safety investment and price is finally analysed.

]]> 10.1504/IJDSRM.2012.046614 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 92 - 107 Kjell Hausken Faculty of Social Sciences, University of Stavanger, 4036 Stavanger, Norway production costs accidents two-stage games prices risky industries productive investments competitive industries competition models economics Joseph Louis Francois Bertrand differentiated products risky environments negligible risks price decreases price increases risk reduction concave reductions convex reductions safety investment competitors firm loyalty consumers product substitutability adverse implications productive investment demand intercepts profit maximisation Nash equilibrium John Forbes Nash solution concepts game theory social planners social welfare joint industry profits income effects substitution effects interdependence effects decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 92 107 2012-05-02T23:20:50-05:00 http://www.inderscience.com/link.php?id=46620 Managers continually seek improved methods to measure the performance of their organisations because they are committed to improve efficiency and effectiveness in their operating units. The sporting performance of professional football teams has often been assessed considering their results in the major regular competition, namely the national league. On the other hand, ranking teams is a multi-criteria decision-making (MCDM) problem. Therefore by taking data for the season 1999/2000 from Haas et al. (2004) we study the efficiency of football teams in the German Bundesliga by MCDM techniques. Based on the analytic hierarchy process (AHP) and the technique for order preferences by similarity to ideal solution (TOPSIS), this paper applies an MCDM approach to evaluate the performance of football teams in the German Bundesliga. The non-parametric Spearman test of relationship (r<SUB align="right">s) and the Kendall's Tau test (τ) of correlation verify the results of DEA and TOPSIS. Ranking football teams with AHP and TOPSIS methods
Reza Kiani Mavi; Neda Kiani Mavi; Leila Kiani
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 108 - 126
Managers continually seek improved methods to measure the performance of their organisations because they are committed to improve efficiency and effectiveness in their operating units. The sporting performance of professional football teams has often been assessed considering their results in the major regular competition, namely the national league. On the other hand, ranking teams is a multi-criteria decision-making (MCDM) problem. Therefore by taking data for the season 1999/2000 from Haas et al. (2004) we study the efficiency of football teams in the German Bundesliga by MCDM techniques. Based on the analytic hierarchy process (AHP) and the technique for order preferences by similarity to ideal solution (TOPSIS), this paper applies an MCDM approach to evaluate the performance of football teams in the German Bundesliga. The non-parametric Spearman test of relationship (r<SUB align="right">s) and the Kendall's Tau test (τ) of correlation verify the results of DEA and TOPSIS.

]]> 10.1504/IJDSRM.2012.046620 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 108 - 126 Reza Kiani Mavi; Neda Kiani Mavi; Leila Kiani Department of Industrial Management, Faculty of Management and Accounting, Qazvin Branch, Islamic Azad University (IAU), Nokhbegan Street, Qazvin, 34185-1416, Iran. ' Department of Physical Education and Sport Science, Faculty of Management and Accounting, Qazvin Branch, Islamic Azad University (IAU), Nokhbegan Street, Qazvin, 34185-1416, Iran. ' Department of Science, Faculty of Engineering, Miyaneh Branch, Islamic Azad University (IAU), Zeinabiieh Street, Miyaneh, 53158-36511, Iran analytical hierarchy process AHP multicriteria decision making MCDM sport TOPSIS order preference similarity ideal situations football teams managers performance measurement efficiency effectiveness operating units sporting performance professional football match results sporting competitions national leagues German Bundesliga football leagues Germany professional football association football Spearman' s rank correlation coefficient Spearman' s rho Charles Spearman non-parametric measures Kendall' s tau coefficient measured quantities non-parametric hypothesis tests statistical dependence data rankings Maurice Kendall decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 108 126 2012-05-02T23:20:50-05:00 http://www.inderscience.com/link.php?id=46622 A fuzzy expert system methodology is proposed, based on the combination of bow-tie diagrams and fuzzy set theory. It was designed to support the management of supply-chain (SC) disturbances. Such disturbances are understood as risks to the SC. This methodology includes a phased process starting with the analysis of potential disturbances using cause-and-effect diagrams, followed by a bow-tie analysis relating disturbances, causes, barriers and consequences, used to derive fuzzy rules applied in the SC risk assessment, and ending with advice on mitigating measures to control the consequences of disturbances. The evaluation of the methodology based on scenarios offered promising results about its capabilities. A fuzzy expert system model to deal with supply chain disturbances
Isabel L. Nunes; V. Cruz Machado
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 127 - 151
A fuzzy expert system methodology is proposed, based on the combination of bow-tie diagrams and fuzzy set theory. It was designed to support the management of supply-chain (SC) disturbances. Such disturbances are understood as risks to the SC. This methodology includes a phased process starting with the analysis of potential disturbances using cause-and-effect diagrams, followed by a bow-tie analysis relating disturbances, causes, barriers and consequences, used to derive fuzzy rules applied in the SC risk assessment, and ending with advice on mitigating measures to control the consequences of disturbances. The evaluation of the methodology based on scenarios offered promising results about its capabilities.

]]> 10.1504/IJDSRM.2012.046622 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 127 - 151 Isabel L. Nunes; V. Cruz Machado Departamento Engenharia Mecânica e Industrial, Faculdade de Ciências e Tecnologia, Universidade Nova de Lisboa, Campus de Caparica, 2829-516 Caparica, Portugal; Centro de Tecnologia e Sistemas – UNINOVA, Campus de Caparica, 2829-516 Caparica, Portugal. ' Departamento Engenharia Mecânica e Industrial, Faculdade de Ciências e Tecnologia, Universidade Nova de Lisboa, Campus de Caparica, 2829-516 Caparica, Portugal; Unidade de Investigação em Engenharia Mecânica e Industrial, FCT/UNL, Campus de Caparica, 2829-516 Caparica, Portugal supply chain disturbances fuzzy set theory fuzzy expert systems bow-tie analysis cause-and-effect diagrams SCM supply chain management phased processes potential disturbances barriers consequences fuzzy rules risk assessments mitigating measures decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 127 151 2012-05-02T23:20:50-05:00 http://www.inderscience.com/link.php?id=46621 The present review of remarkable developments in the forecasting/planning field aimed to provide highlights of conceptual and applied contributions that recently benefited scholar research and practice. The paper balanced conceptual and technical developments to show both qualitative and quantitative challenges that forecasting/planning faces. The study identified future research areas for academia and practice to pursue for achieving improvements in planning/forecasting and resulting leverage in business performance. Forecasting and planning: a review of contemporary issues and developments
Pavel Bondarev; Andrey Fendyur
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 152 - 162
The present review of remarkable developments in the forecasting/planning field aimed to provide highlights of conceptual and applied contributions that recently benefited scholar research and practice. The paper balanced conceptual and technical developments to show both qualitative and quantitative challenges that forecasting/planning faces. The study identified future research areas for academia and practice to pursue for achieving improvements in planning/forecasting and resulting leverage in business performance.

]]> 10.1504/IJDSRM.2012.046621 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 152 - 162 Pavel Bondarev; Andrey Fendyur Telus Telecommunications Inc., 411 1st St SE, Calgary, AB, T2G 4Y5, Canada. ' OPMA Area, Scurfield Hall, Haskayne School of Business, University of Calgary, 2500 University Dr. NW, Calgary, AB, T2N 1N4, Canada planning efficiency forecasting modelling scenario planning scholarly research conceptual developments technical developments qualitative challenges quantitative challenges future research academia leverage business performance decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 152 162 2012-05-02T23:20:50-05:00 http://www.inderscience.com/link.php?id=46604 This research proposes some new differential equations to be used by practitioners and theorists when investigating design and conformance quality. Although those two quality features have been already extensively studied, the literature reveals several limitations that this research attempts to overcome. The differential equations used so far in game theory are analysed, identifying their tradeoffs, interactions and limitations and then original equations are developed to explore both design and conformance quality. In order to study conformance quality, its differential equation should consider not only failures but also prevention and appraisal. The differential equation of design quality does not always increase, but instead, it increases and decreases over time according to a number of external factors. Design and conformance quality generate several economic tradeoffs and managerial interactions that firms need to consider when implementing a total quality strategy. Recent developments in the differential equations of design and conformance quality
Maria Roselli; Pietro De Giovanni
International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 163 - 174
This research proposes some new differential equations to be used by practitioners and theorists when investigating design and conformance quality. Although those two quality features have been already extensively studied, the literature reveals several limitations that this research attempts to overcome. The differential equations used so far in game theory are analysed, identifying their tradeoffs, interactions and limitations and then original equations are developed to explore both design and conformance quality. In order to study conformance quality, its differential equation should consider not only failures but also prevention and appraisal. The differential equation of design quality does not always increase, but instead, it increases and decreases over time according to a number of external factors. Design and conformance quality generate several economic tradeoffs and managerial interactions that firms need to consider when implementing a total quality strategy.

]]> 10.1504/IJDSRM.2012.046604 International Journal of Decision Sciences, Risk and Management, Vol. 4, No. 1/2 (2012) pp. 163 - 174 Maria Roselli; Pietro De Giovanni IRCCS S. Matteo; Università degli studi di Pavia 27100, Pavia, Italy. ' Faculdade de Economia, Nova School of Business and Economics, Campus Campolide, 1099, Lisbon, Portugal design quality conformance quality game theory differential equations economic tradeoffs managerial interactions limitations failures failure prevention failure appraisal external factors TQM total quality management decision sciences risk management. 2012-05-02T23:20:50-05:00 4 1/2 163 174 2012-05-02T23:20:50-05:00