The Delivery and Control of Quality in Supplier-Producer Contracts
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.
Volume (Year): 41 (1995)
Issue (Month): 10 (October)
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