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The Delivery and Control of Quality in Supplier-Producer Contracts

Author

Listed:
  • Diane J. Reyniers

    (London School of Economics, London WC2A 2AP, United Kingdom)

  • Charles S. Tapiero

    (ESSEC, 95021 Cergy Pontoise, France)

Abstract

We model the effect of contract parameters such as price rebates and after-sales warranty costs on the choice of quality by a supplier, the inspection policy of a producer, and the resulting end product quality. Both noncooperative and cooperative settings are explored. The paper's contribution is to highlight the importance of strategic and contractual issues in quality management.

Suggested Citation

  • Diane J. Reyniers & Charles S. Tapiero, 1995. "The Delivery and Control of Quality in Supplier-Producer Contracts," Management Science, INFORMS, vol. 41(10), pages 1581-1589, October.
  • Handle: RePEc:inm:ormnsc:v:41:y:1995:i:10:p:1581-1589
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    File URL: http://dx.doi.org/10.1287/mnsc.41.10.1581
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    Keywords

    quality control; inspection; game theory;

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