Research Reports from the Department of Operations

Document Type

Report

Publication Date

1-1-1983

Abstract

It has been widely recognized that quality control and the repair services provided by a firm are important strategic tools for the sales of the firm's product. This paper considers the relationship between these two important decision variables of the firm: quality control and service capacities. For both the cases of degenerate and non-degenerate probability distributions of defective items, analytical results for the determination of optimal quality control inspection policy and optimum service capacities are obtained. The sufficient conditions derived provide a powerful means to determine the optimal strategies under different scenarios. For the non-degenerate case, bounds for the optimal strategies have also been derived, which greatly facilitate the search procedure for these strategies. Finally, we have also discussed the possible approximations for cases where only the first two moments of the non-degenerate distribution of defects are known. [Likely published circa 1983.]

Keywords

Operations research, Quality control, Product management, Mathematical optimization, Decision making--Mathematical models, Strategic planning

Publication Title

Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University

Issue

Technical memorandum no. 532

Rights

This work is in the public domain and may be freely downloaded for personal or academic use

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