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An optimal control model with defective products and goodwill damages

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  • Pietro De Giovanni

    (ESSEC Business School)

Abstract

In this paper, we formulate an optimal control model that considers the negative effect of product failures on goodwill. Differently from the models developed in the literature, we replicate Juran’s (Quality control handbook, McGraw Hill, New York, 1979) and Crosby’s (Quality is free, McGraw-Hill, New York, 1979) conformance quality models. Our findings suggest that a total quality management orientation should always consider an appraisal and prevention strategy to avoid the negative effect of defects on goodwill.

Suggested Citation

  • Pietro De Giovanni, 2020. "An optimal control model with defective products and goodwill damages," Annals of Operations Research, Springer, vol. 289(2), pages 419-430, June.
    • Handle: RePEc:spr:annopr:v:289:y:2020:i:2:d:10.1007_s10479-019-03176-4
    DOI: 10.1007/s10479-019-03176-4
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    References listed on IDEAS

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    Cited by:

    1. De Giovanni, Pietro & Zaccour, Georges, 2023. "A survey of dynamic models of product quality," European Journal of Operational Research, Elsevier, vol. 307(3), pages 991-1007.
    2. De-Qing Ma & Xiao-Qing Wang & Xue Wang & Jin-Song Hu, 2023. "Achieving Triple Benefits in a Platform-Based Closed-Loop Supply Chain: The Optimal Combination between Recycling Channel and Blockchain," Sustainability, MDPI, vol. 15(5), pages 1-40, February.
    3. Zengyuan Wu & Caihong Zhou & Fei Xu & Wengao Lou, 2022. "A CS-AdaBoost-BP model for product quality inspection," Annals of Operations Research, Springer, vol. 308(1), pages 685-701, January.
    4. Mukherjee, Arka & Carvalho, Margarida & Zaccour, Georges, 2023. "Managing quality and pricing during a product recall: An analysis of pre-crisis, crisis and post-crisis regimes," European Journal of Operational Research, Elsevier, vol. 307(1), pages 406-420.
    5. Lotfi Tadj & Salah Djemili, 2022. "Joint optimization of the marketing and operations functions," OPSEARCH, Springer;Operational Research Society of India, vol. 59(2), pages 574-593, June.

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