Title: Supply chain coordination in quality improvement with synergy effect

Authors: Zhiying Liu; Yi He

Addresses: School of Management, University of Science and Technology of China, Hefei, Anhui, 232206, China ' School of Management, University of Science and Technology of China, Hefei, Anhui, 232206, China

Abstract: This paper focuses on the quality improvement efforts through cooperative decisions in the supply chain system. In detail, the supply chain system considered in our study consists of a supplier and a manufacturer, where the manufacturer produces a final product that consists of two components: one provided by the supplier and the other by the manufacturer. Utilising the optimisation theory, we calculate and compare the optimal quality improvement efforts for each stage of the supply chain system under two different scenarios. Also, a coordination strategy based on quality improvement efforts is proposed and is proven effective in the considered supply chain system.

Keywords: supply chain coordination; quality improvement; subsidy rate; synergy effect; supply chain management; SCM; optimisation.

DOI: 10.1504/IJDATS.2015.073866

International Journal of Data Analysis Techniques and Strategies, 2015 Vol.7 No.4, pp.350 - 365

Available online: 24 Dec 2015 *

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