Research Reports from the Department of Operations
Document Type
Report
Publication Date
11-1-1984
Abstract
Product reliability decisions, quality control policies, and warranty and servicing contracts impact costs and profits. The purpose of this article is to simultaneously determine reliability levels, quality control, and post-sales repairing/ servicing capacities, so as to maximize profitability. Based on long-run average profits, and using a renewal theory approach, a framework is developed, whereby the substitution effects of the decision variables can be explored. Specific examples of the procedure are investigated. These include a simple attribute quality control scheme with random production lot sizes and a curtailed sampling scheme with fixed production lots.
Keywords
Operations research, Quality control, Renewal theory, Production management, Sampling (Statistics)
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 553
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Chandramohan, Jagadeesh; Ritchken, Peter H.; and Tapiero, Charles S., "The Servicing Capacity/Quality Control Problem" (1984). Research Reports from the Department of Operations. 512.
https://commons.case.edu/wsom-ops-reports/512