Supply chain planning considering the production of defective products

When the markets become more competitive, the customer satisfaction level starts to be a more important factor. One of the principal components to achieve the customer satisfaction is to minimize the amount of defective or non-standard products. Therefore, it is convenient to consider decisions about product quality when the supply chain is planned. In this work, a mixed integer linear programming mathematical (MILP) model is developed for the supply chain planning, which determines impact of different decisions over the expected number of defective products. These decisions are: supplier selection, inbound control methods selection, and production process selection. The ob-jective function is the cost minimization associated to the supply chain planning.Sociedad Argentina de Informática e Investigación Operativa (SADIO

Assessing a customer complaint indicator: a case study in the automotive sector

Introduction - Key Performance Indicators (KPIs) are used in many organizations to facilitate decisions and actions. A KPI life cycle is composed of four phases: design, implementation, use, and review. In the review phase, indicators may eventually be deleted, included, or replaced. The literature lacks analyses of the real improvement caused by the implementation and use of revised KPIs. Purpose - This paper presents a real case of a reviewed KPI that was implemented in a leading company in the automotive electronics industry. Methodology - The Methodology adopted was the Case Study. Findings - The KPI that went through the review is related to customer complaints. Despite having overcome the limitation that triggered its creation, new shortcomings were perceived by management during the use phase. Three situations are presented to exemplify the limitations of previous and current indicators, concluding that the most critical drawback is present in both: the lack of a clear purpose. Therefore, assuming certain purposes, suggestions for improvement are proposed.This work has been supported by FCT – Fundação para a Ciência e Tecnologia within the R&D Units Project Scope: UIDB/00319/2020

Inspection games in a mean field setting

In this paper, we present a new development of inspection games in a mean field setting. In our dynamic version of an inspection game, there is one inspector and a large number N interacting inspectees with a finite state space. By applying the mean field game methodology, we present a solution as an epsilon-equilibrium to this type of inspection games, where epsilon goes to 0 as N tends to infinity. In order to facilitate numerical analysis of this new type inspection game, we conduct an approximation analysis, that is we approximate the optimal Lipschitz continuous switching strategies by smooth switching strategies. We show that any approximating smooth switching strategy is also an epsilon-equilibrium solution to the inspection game with a large and finite number N of inspectees with epsilon being of order 1/N

Inspection and crime prevention : an evolutionary perspective

In this paper, we analyse inspection games with an evolutionary perspective. In our evolutionary inspection game with a large population, each individual is not a rational payoff maximiser, but periodically updates his strategy if he perceives that other individuals' strategies are more successful than his own, namely strategies are subject to the evolutionary pressure. We develop this game into a few directions. Firstly, social norms are incorporated into the game and we analyse how social norms may influence individuals' propensity to engage in criminal behaviour. Secondly, a forward-looking inspector is considered, namely, the inspector chooses the level of law enforcement whilst taking into account the effect that this choice will have on future crime rates. Finally, the game is extended to the one with continuous strategy spaces

Supply chain planning considering the production of defective products

When the markets become more competitive, the customer satisfaction level starts to be a more important factor. One of the principal components to achieve the customer satisfaction is to minimize the amount of defective or non-standard products. Therefore, it is convenient to consider decisions about product quality when the supply chain is planned. In this work, a mixed integer linear programming mathematical (MILP) model is developed for the supply chain planning, which determines impact of different decisions over the expected number of defective products. These decisions are: supplier selection, inbound control methods selection, and production process selection. The ob-jective function is the cost minimization associated to the supply chain planning.Sociedad Argentina de Informática e Investigación Operativa (SADIO

How Visitor Satisfaction and Intention to Revisit Are Created by Event Quality and Perceived Value? A Lesson from the Local Food Festival in Brebes

The emergence of many festivals and events shows that Arranging festivals centered around specific themes has the potential to boost economic development on both local and national scales. To investigate how events can improve visitors' perception of event quality, perceived value, trust, visitor satisfaction, and behavioral intentions, the annual food festival during the 344th anniversary celebration of Brebes was selected to explore these relationships. A total of 350 questionnaires were distributed to visitors and the data analysis was performed on 335 valid questionnaires using structural equation modeling. The results show that event quality has a positive and significant effect on perceived value (β = 0.205; p-value 0.037 <0.05). In addition, perceived value has a positive and significant effect on trust (β = 0.0585; p-value 0.000 <0.05). Finally, trust has a positive impact on event satisfaction (p-value 0.000 <0.05), which in turn affects the intention to revisit (p-value 0.004 <0.05). Drawing from these observed outcomes, this research provides practical and theoretical insights for event management entities and festival organizers to continue hosting annual theme-centered festivals during specific occasions and destinations to improve visitors' attachment to the values and authenticity offered. Keywords: event quality, event satisfaction, intention to revisit, perceived value, food festiva

Quality and Environmental Regulation: Verifying Compliance along the Supply Chain

Among the factors providing incentives to monitor the behaviour of input suppliers are the regulatory requirements to which downstream firms are subject. We develop a formal economic model to examine the relationship between the strictness of the regulatory environment and downstream firms’ incentives to act as inspectors of their sub-contractors. We consider the interaction between a downstream producer and an upstream input supplier. The downstream chooses the probability with which to monitor the upstream’s compliance and the upstream chooses a compliance level which determines compliance of the end product with quality or environmental regulation. We find that the strictness of regulation affects the downstream’s monitoring strategy in combination with the level of quality or environmental standards. If the standards are sufficiently low then the strictness of regulation increases incentives to monitor the upstream. Contrary, if the standards are sufficiently high then the pressure on the downstream to monitor the upstream is relaxed and the strictness of regulation decreases incentives to monitor. We argue that the strictness of regulation should not be treated in isolation as a factor determining the choice of downstream firms to monitor their input suppliers.compliance; monitoring; supply chain; quality and environmental regulation

New application of game theory in supply chain management = A játékelmélet újszerű alkalmazása az ellátási lánc menedzsmentben

Game theory has become an essential tool in the analysis of supply chains with multiple players who often have different interests. In this study, we use the game theory to examine the possibility of decision optimization and achieving equilibrium in the operation of the supply chain. Our goal is to determine the optimal agreement between the wholesaler and the retailer(s) to minimize the total cost in the supply chain in the given situation. The research method used in the study enriches the literature on the topic by linking the minimization of costs not to abstract evaluation metrics but to the stock order item size often calculated in real business as well. This facilitates the interpretation of the strategies and decision motivations used by the members of the supply chain