Quality investment and cost-sharing in the manufacturer-supplier cooperative development for complex products

Author

Yaping Li ; Sifeng Liu ; Zhigeng Fang

Author_Institution

Coll. of Econ. & Manage., Nanjing Univ. of Aeronaut. & Astronaut., Nanjing, China

fYear

2013

fDate

15-17 Nov. 2013

Firstpage

1

Lastpage

6

Abstract

To consider the efficiency in determining quality investment and cost-share in the manufacturer-supplier cooperative development for complex products, a minimum maximization model is build. To achieve this aim, expressions of quality level, quality-gain and cost are all proposed first. Then cost-sharing by Shapley value method is given. Next, the cooperative efficiency is defined, and the minimum maximization model with maximizing the minimum of each partner´s cooperative efficiency is established. Moreover, the algorithm of resolving the model is devised. The results of the model are the optimum resolution for quality investment and cost-share in the cooperative development.

Keywords

costing; industrial economics; investment; optimisation; quality control; value engineering; Shapley value method; complex product quality; cost sharing; manufacturer-supplier cooperative development; minimum-maximization model; quality gain; quality investment; quality level; Algorithm design and analysis; Cost function; Educational institutions; Games; Investment; Mathematical model; Supply chains; complex products; cooperative efficiency; cost-sharing; quality investment;

fLanguage

English

Publisher

ieee

Conference_Titel

Grey Systems and Intelligent Services, 2013 IEEE International Conference on

Conference_Location

Macao

ISSN

2166-9430

Print_ISBN

978-1-4673-5247-5

Type

conf

DOI

10.1109/GSIS.2013.6714839

Filename

6714839