TY - GEN
T1 - A study of compensation problem for uncertainty of quality in supply chain
AU - Takemoto, Yasuhiko
AU - Arizono, Ikuo
N1 - Funding Information:
Manuscript received Nov 28, 2017; revised Jan 12, 2018. This work was supported by Japan Society for the Promotion of Science (JSPS) KAKENHI Grant Number 26350433: “The rationalization and optimization of distribution systems based on mechanism design in supply chain environments” and Grant Number 17K01266: “The investigation of data visualization and its application to production and operation management”.
Publisher Copyright:
© 2018 Newswood Limited. All rights reserved.
PY - 2018
Y1 - 2018
N2 - The uncertainty of demand occurs at a downstream side and spreads over an upstream side in a supply chain. To the contrary, the uncertainty of supply occurs at an upstream side and spreads over an downstream side in a supply chain. The quality of items is particularly important as a factor in the uncertainty. Imperfect quality items included in the procurement from a supplier brings the uncertainty of supply, that is, whether imperfect quality items are included or not, or how many imperfect quality items are included. An intangible loss due to the uncertainty of imperfect quality items is unavoidable even if the downstream side (taht is, a manufacrurer or retailer) prevented all imperfect quality items from being distributed to customers and society by perfect inspection. Therefore, in this paper, we consider the impact of the uncertainty of imperfect quality items in the situation that the imperfect quality items included in the procurement from the supplier are perfectly retrieved in the downstream side. In particular, the impact of the uncertainty of imperfect quality items is evaluated as an object of a monetary compensation. Hence, we propose a condition of the monetary compensation to maintain supply chain partnarship. Through some numerical examples, the condition of the monetary compensation for the uncertanty of imperfect quality items is illustrated.
AB - The uncertainty of demand occurs at a downstream side and spreads over an upstream side in a supply chain. To the contrary, the uncertainty of supply occurs at an upstream side and spreads over an downstream side in a supply chain. The quality of items is particularly important as a factor in the uncertainty. Imperfect quality items included in the procurement from a supplier brings the uncertainty of supply, that is, whether imperfect quality items are included or not, or how many imperfect quality items are included. An intangible loss due to the uncertainty of imperfect quality items is unavoidable even if the downstream side (taht is, a manufacrurer or retailer) prevented all imperfect quality items from being distributed to customers and society by perfect inspection. Therefore, in this paper, we consider the impact of the uncertainty of imperfect quality items in the situation that the imperfect quality items included in the procurement from the supplier are perfectly retrieved in the downstream side. In particular, the impact of the uncertainty of imperfect quality items is evaluated as an object of a monetary compensation. Hence, we propose a condition of the monetary compensation to maintain supply chain partnarship. Through some numerical examples, the condition of the monetary compensation for the uncertanty of imperfect quality items is illustrated.
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M3 - Conference contribution
AN - SCOPUS:85062637650
T3 - Lecture Notes in Engineering and Computer Science
BT - Proceedings of the International MultiConference of Engineers and Computer Scientists 2018, IMECS 2018
A2 - Castillo, Oscar
A2 - Feng, David Dagan
A2 - Korsunsky, A.M.
A2 - Douglas, Craig
A2 - Ao, S. I.
PB - Newswood Limited
T2 - 2018 International MultiConference of Engineers and Computer Scientists, IMECS 2018
Y2 - 14 March 2018 through 16 March 2018
ER -