Incorporating the cost of quality in supply chain design

Due to the complexity of the supply chain, sourcing and distribution activities within the supply chain require a fair deal of orchestrating in order to eliminate delays and other inefficiencies. For this reason, researchers have worked effortlessly to incorporate a wide range of parameters as to model the supply chain. Issues pertaining to quality are of great importance in organizations. Some literature has discussed quality from the perspective of the supply chain and acknowledged the lack of a consistent vision pertaining to quality throughout the supply chain. In this paper we consider the practical implication of integrating Cost of Quality (COQ) into supply chain modeling. Further, this paper introduces two different models. Each model remedies the limitations encountered when modeling COQ into the supply chain and tailors to a different possible scenario within the frame of the supply chain.