| Author: | Starbird, S. |
| Title: | The effect of acceptance sampling and risk aversion on the quality delivered by suppliers |
| Journal: | Journal of the Operational Research Society
1994 : MAR, VOL. 45:3, p. 309-320 |
| Index terms: | QUALITY SAMPLING PURCHASING RISK |
| Language: | eng |
| Abstract: | Firms often use acceptance sampling to monitor the quality of the raw materials and components delivered by suppliers. In this paper, the author uses numerical methods to examine how a risk averse supplier reacts to the acceptance sampling plan used by a customer. The author assumes that the supplier produces and delivers a quality level that maximizes the supplier's expected utility. The author examines the sensitivity of the optimal delivered quality to changes in the price, to changes in the supplier's level of risk aversion, and to changes in the parameters of the customer's sampling plan. |
SCIMA