Seminar
Department of Systems Engineering and Engineering Management
The Chinese University of Hong Kong
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Title |
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Pushing Quality Improvement Along Supply Chains
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Speaker |
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Prof. Kaijie Zhu |
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Department of Industrial Engineering and Logistics Management |
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HKUST |
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Date |
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October 15th, 2007 (Monday) |
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Time |
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4:30 p.m. - 5:30 p.m. |
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Venue |
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Room 513 |
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William M.W. Mong Engineering Building |
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(Engineering Building Complex Phase 2) |
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CUHK |
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Abstract:
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In this paper, we consider a buyer who designs a product and owns the brand, yet outsources the production to a supplier. Both the buyer and the supplier incur quality-related costs, e.g., costs of customer goodwill and future market share loss by the buyer and warranty-related costs shared by both the buyer and the supplier whenever a nonconforming item is sold to a customer. Therefore, both parties have an incentive to invest in quality-improvement efforts. This paper explores the roles of different parties in a supply chain in quality improvement. We show that the buyer's involvement can have a significant impact on the profits of both parties and of the supply chain as a whole, and he cannot cede the responsibility of quality improvement to the supplier in many cases. We also investigate how quality-improvement decisions interact with operational decisions such as the buyer's order quantity and the supplier's production lot size.
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Biography:
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Kaijie Zhu received his PhD degree in Management Science and Engineering from Stanford University in 2002, and his master's and bachelor's degrees in Automatic Control from Shanghai Jiao Tong University in 1996 and 1993, respectively. He joined the Department of Industrial Engineering and Logistics Management at HKUST as an assistant professor in 2002, prior to which he worked as a pre-professional intern at T. J. Watson Research Center of IBM in summer 2000. His research interests lie in inventory control, logistics, and supply chain management. He has published papers in such journals as Operations Research, Management Science, Manufacturing & Service Operations Management, and Naval Research Logistics. |
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