Specification vagueness and supply quality risk

Medientyp: E-Artikel
Titel: Specification vagueness and supply quality risk
Beteiligte: Wang, Yimin
Erschienen: Wiley, 2013
Erschienen in: Naval Research Logistics (NRL)
Sprache: Englisch
DOI: 10.1002/nav.21530
ISSN: 0894-069X; 1520-6750
Schlagwörter: Management Science and Operations Research ; Ocean Engineering ; Modeling and Simulation
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Beschreibung: <jats:title>Abstract</jats:title><jats:p>Specifying quality requirement is integral to any sourcing relationship, but vague and ambiguous specifications can often be observed in practice, especially when a buyer is in the initial stage of sourcing a new product. In this research, we study a supplier's production incentives under vague or exact quality specifications. We prove that a vague specification may in fact motivate the supplier to increase its quantity provision, resulting in a higher delivery quality. Vague quality specification can therefore be advantageous for a buyer to screen potential suppliers with an initial test order, and then rely on the received quality level to set more concrete quality guidelines. There is a degree, though, to which vague quality specification can be effective, as too much vagueness may decrease the supplier's quantity provision and hence the expected delivery quality. © 2013 Wiley Periodicals, Inc. Naval Research Logistics, 2013</jats:p>

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