After focusing on Cost of Quality (CoQ), the companies must now move into integrating the CoQ into Supply Chain upstream and downstream, to address CoQ issues across Supply Chain Network Design (SCND) modeling. In this preliminary study, we propose a state of the art of the published works on models and classifications of SCND incorporating the CoQ existing in the literature. In the second part of this paper, we will present a review by studying and analyzing the application of some meta-heuristics to solve supply chain models. The reviewed meta-heuristics include: the genetic algorithm (GA), and simulated annealing (SA). Finally, we suggest directions for future research.
KeywordsCost of QualitySupply Chain ManagementMulti-Objective OptimizationGenetic AlgorithmSimulated Annealing
Juran, J.M. (1951) Quality Control Handbook. McGraw-Hill, New York.
Feigenbaum, A. (1957) The Challenge of Total Quality Control. Industrial Quality Control, 13, 17-23.
Machowski, F. and Dale, B.G. (1998) Quality Costing: An Examination of Knowledge, Attitudes and Perceptions. Quality Management Journal, 5, 84-95.
Srivastava, S.K. (2008) Towards Estimating Cost of Quality in Supply Chains. Total Quality Management & Business Excellence, 19, 193-208. http://dx.doi.org/10.1080/14783360701600605
Bottorff, D.L. (1997) CoQ Systems: The Right Stuff. Quality Progress, 30, 33-35.
Crosby, P. (1984) Quality without Tears: The Art of Hassle Free Management. McGraw-Hill, New York.
Sower, V.E. and Quarles, R. (2007) Cost of Quality Usage and Its Relationship to Quality System Maturity. International Journal of Quality & Reliability Management, 24, 121-140. http://dx.doi.org/10.1108/02656710710722257
Altiparmak, F., Gen, M., Lin, L. and Paksoy, T. (2006) A Genetic Algorithm Approach for Multi-Objective Optimization of Supply Chain Networks. Computers & Industrial Engineering, 51, 196-215. http://dx.doi.org/10.1016/j.cie.2006.07.011
Farahani, R.Z. and Elahipanah, M. (2008) A Genetic Algorithm to Optimize the Total Cost and Service Level for Just-in-Time Distribution in a Supply Chain. International Journal of Production Economics, 111, 229-243. http://dx.doi.org/10.1016/j.ijpe.2006.11.028
Castillo-Villar, K.K., Smith, N.R. and Herbert-Acero, J.F. (2014) Design and Optimization of Capacitated Supply Chain Networks Including Quality Measures. Mathematical Problems in Engineering, 2014, Article ID: 218913. http://dx.doi.org/10.1155/2014/218913
Freeman, J.M. (2008) The Case for Quality Costing Simulation. Journal of Total Quality Management, 20, 476-487.
Sandoval-Chavez, D.A. and Beruvides, M.G. (1998) Using Opportunity Costs to Determine the Cost of Quality: A Case Study in a Continuous-Process Industry. Engineering Economist, 43, 107-124. http://dx.doi.org/10.1080/00137919808903192
Schiffauerova, A. and Thomson, (2006) A Review of Research on Cost of Quality Models and Best Practices. International Journal of Quality and Reliability Management, 23, 647-669. http://dx.doi.org/10.1108/02656710610672470
Porter, L.J. and Rayner, P. (1992) Quality Costing for Total Quality Management. International Journal of Production Economics, 27, 69-81. http://dx.doi.org/10.1016/0925-5273(92)90127-S
Campanella, J. (1990) Principles of Quality Costs: Principles, Implementation, and Use. 2nd Edition, ASQC Quality Costs Committee, Milwaukee.
Stefano, A.S., Valentina, C., Lorenzo, T., Nils, L. and Jutta, G. (2015) A Logistic Network to Harmonise the Development of Local Food System with Safety and Sustainability. International Journal of Integrated Supply Management, 9, 307-328. http://dx.doi.org/10.1504/IJISM.2015.070530
Ozgur, A. and Huseyin, A. (2009) Cost of Quality Management: An Empirical Study from Turkish Marble Industry. Scientific Research and Essay, 4, 1275-1285.
Fox, M.J. (1989) The Great Economic Quality Hoax. Quality Assurance, 15, 72-74.
Price, F. (1984) Right First Time. Gower, Aldershot.
Tatikonda, L.U. and Tatikonda, R.J. (1996) Measuring and Reporting the Cost of Quality. Production and Inventory Management Journal, 37, 1-7.
Carr, L.P. (1992) Applying Cost of Quality to a Service Businesses. Sloan Management Reviews, 33, 72-77.
Albright, T.L. and Roth, H.P. (1992) The Measurement of Quality Costs: An Alternative Paradigm. Accounting Horizons, 6, 15-27.
Ross, D.T. (1977) Structured Analysis (SA): A Language for Communicating Ideas. IEEE Transactions on Software Engineering, 3, 16-34. http://dx.doi.org/10.1109/TSE.1977.229900
Marsh, J. (1989) Process Modeling for Quality Improvement. Proceedings of the 2nd International Conference on Total Quality Management, London, 14-15 June 1989, 111-215.
Vaxevanidis, N.M. and Petropoulos, G. (2008) A Literature Survey of Cost of Quality Models. Annals of Faculty of Engineering Hunedoara—Journal of Engeering, 6, 274-283.
Cooper, R. and Kaplan, R.S. (1988) Measure Costs Right: Make the Right Decisions. Harvard Business Review, 66, 96-103.
Tsai, W.H. (1998) Quality Cost Measurement under Activity-Based Costing. International Journal of Quality and Reliability Management, 15, 719-752. http://dx.doi.org/10.1108/02656719810218202
Burgess, T.F. (1996) Modeling Quality-Cost Dynamics. International Journal of Quality & Reliability Management, 13, 8-26. http://dx.doi.org/10.1108/02656719610116054
Dale, B.G. and Plunkett, J.J. (1995) Quality Costing. 2nd Edition, Chapman and Hall, London.
Chan, F.T.S. and Chung, S.H. (2004) A Multi-Criterion Genetic Algorithm for Order Distribution in a Demand Driven Supply Chain. International Journal Computer Integrated Manufacturing, 17, 339-351. http://dx.doi.org/10.1080/09511920310001617022
Modarres, B. and Ansari, A. (1987) Two New Dimensions in the Cost of Quality. International Journal of Quality & Reliability Management, 4, 9-20. http://dx.doi.org/10.1108/eb002886
Crossfield, R.T. and Dale, B.G. (1990) Mapping Quality Assurance Systems: A Methodology. Quality and Reliability Engineering International, 6, 167-178. http://dx.doi.org/10.1002/qre.4680060303
Goulden, C. and Rawlins, L. (1995) A Hybrid Model for Process Quality Costing. International Journal of Quality & Reliability Management, 12, 32-47. http://dx.doi.org/10.1108/02656719510097499
Jorgenson, D.M. and Enkerlin, M.E. (1992) Managing Quality Costs with the Help of Activity Based Costing. Journal of Electronics Manufacturing, 2, 47-55. http://dx.doi.org/10.1142/S0960313192000182
Dawes, E.W. and Siff, W. (1993) Using Quality Costs for Continuous Improvement. ASQC Annual Quality Congress Transactions, 47, 810-816.
Walid, K. (2008) The Design of Robust Value Creating Supply Chain Networks: A Critical Review. Interuniversity Research Center on Enterprise Networks Logistics and Transportation—CIRRELET.
Ramudhin, A., Alzaman, C. and Bulgak, A.A. (2008) Incorporating the Cost of Quality in Supply Chain Design. Journal of Quality in Maintenance Engineering, 14, 71-86. http://dx.doi.org/10.1108/13552510810861950
Geoffrion A.M. and Graves, G.W. (1974) Multicommodity Distribution System Design by Benders Decomposition. Management Science, 20, 822-844. http://dx.doi.org/10.1287/mnsc.20.5.822
Breitman, R.L. and Lucas, J.M. (1987) PLANETS: A Modeling System for Business Planning. Interfaces, 17, 94-106. http://dx.doi.org/10.1287/inte.17.1.94
Sabri, E.H. and Beamon, B.M. (2000) A Multi-Objective Approach to Simultaneous Strategic and Operational Planning in Supply Chain Design. Omega, 28, 581-598. http://dx.doi.org/10.1016/S0305-0483(99)00080-8
Cohen, M.A. and Lee, H.L. (1989) Resource Deployment Analysis of Global Manufacturing and Distribution Networks. Journal of Manufacturing and Operations Management, 2, 81-104.
Arntzen, B.C., Brown, G.G., Harrison, T.P. and Trafton, L.L. (1995) Global Supply Chain Management at Digital Equipment Corporation. Interfaces, 25, 69-93. http://dx.doi.org/10.1287/inte.25.1.69
Voudouris, V.T. (1996) Mathematical Programming Techniques to Debottleneck the Supply Chain of fine Chemical Industries. Computers and Chemical Engineering, 20, 1269-1274. http://dx.doi.org/10.1016/0098-1354(96)00219-0
Svoronos, A. and Zipkin, P. (1991) Evaluation of One-for-One Replenishment Policies for Multi-Echelon Inventory Systems. Management Science, 37, 68-83. http://dx.doi.org/10.1287/mnsc.37.1.68
Lee, H.L. and Billington, C. (1993) Material Management in Decentralized Supply Chains. Operations Research, 41, 835-847. http://dx.doi.org/10.1287/opre.41.5.835
Pyke, D.F. and Cohen, M.A. (1993) Performance Characteristics of Stochastic Integrated Production-Distribution Systems. European Journal of Operational Research, 68, 23-48. http://dx.doi.org/10.1016/0377-2217(93)90075-X
Christy, D.P. and Grout, J.R. (1994) Safeguarding Supply Chain Relationships. International Journal of Production Economics, 36, 233-342. http://dx.doi.org/10.1016/0925-5273(94)00024-7
Towill, D.R. (1991) Supply Chain Dynamics. International Journal of Computer Integrated Manufacturing, 4, 197-208. http://dx.doi.org/10.1080/09511929108944496
Das, K. (2011) A Quality Integrated Strategic Level Global Supply Chain Model. International Journal of Production Research, 49, 5-31. http://dx.doi.org/10.1080/00207543.2010.508933
Alborzi, F., Vafaei, H., Gholami, M.H. and Esfahani, M.M.S. (2011) A Multi-Objective Model for Supply Chain Network Design under Stochastic Demand. World Academy of Science, Engineering and Technology, 5, 1651-1655.
Reza, Z.F. and Mahsa, E. (2007) A Genetic Algorithm to Optimize the Total Cost and Service Level for Just-in-Time Distribution in a Supply Chain. International Journal of Production Economics, 111, 229-243.
Shahrooz, S., Payam, C. and Ahmad, A. (2013) Designing an Integrated Multi-objective Supply Chain Network Considering Volume Flexibility. Proceedings of the World Congress on Engineering and Computer Science, Vol. II, San Francisco, 23-25 October 2013.
Paksoy, T., Özceylan, E. and Weber, G.-W. (2010) A Multi-Objective Mixed Integer Programming Model For Multi Echelon Supply Chain Network Design and Optimization. Selçuk University, Department of Industrial Engineering, Campus, Konya, Turkey.
Rui, T.S., Songsong, L., Lazaros, G.P. and Nilay, S. (2011) Global Supply Chain Planning for Pharmaceuticals. Chemical Engineering Research and Design, 8, 2396-2409.
Fleischmann, M. and Beullens, P. (2011) Reverse Logistics Network Structures and Design. Faculty of Business Admin Erasmus University Rotterdam, Netherlands.
Bennekrouf, M., Mtalaa, W., Boudhar, F. and Sari, Z. (2011) A Dynamic Model for the Design of Green Logistic Networks. Proceedings of the 41st International Conference on Computers & Industrial Engineering, Los Angeles, 23-25 October 2011, 62-67.
Anil J., Kuldip S.S. and Sachin S.P. (2015) Network Design and Optimization for Multi-Product, Multi-Time, Multiechelon Closed-Loop Supply Chain under Uncertainty. The 22nd CIRP Conference on Life Cycle Engineering, 29, 656-661.
Asil Bulgak, A., Alzaman, C. and Ramudhin, A. (2008) Incorporating the Cost of Quality in Supply Chain Design. Portland International Conference on Management of Engineering & Technology, Cape Town, 27-31 July 2008, 1650-1655. http://dx.doi.org/10.1109/picmet.2008.4599784
Yasamann, K. and Joseph, S. (2016) An Optimization Model for Downstream Petroleum Supply Chain Incorporating Geographic Information System (GIS). International Journal of Integrated Supply Management, 10, 151-172. http://dx.doi.org/10.1504/IJISM.2016.077049
Jayaraman, V. and Ross, A. (2003) A Simulated Annealing Methodology to Distribution Network Design and Management. European Journal of Operational Research, 144, 629-645. http://dx.doi.org/10.1016/S0377-2217(02)00153-4
Pishvaee, M.S., Farahani, R.Z. and Dullaert, W. (2010) A Memetic Algorithm for Bi-Objective Integrated Forward/ Reverse Logistics Network Design. Computers & Operations Research, 37, 1100-1112. http://dx.doi.org/10.1016/j.cor.2009.09.018
Syarif, A., Yun, Y.S. and Gen, M. (2002) Study on Multi-Stage Logistics Chain Network: A Spanning Tree-Based Genetic Algorithm Approach. Computers & Industrial Engineering, 43, 299-314. http://dx.doi.org/10.1016/S0360-8352(02)00076-1
Fulya, A., Mitsuo, G.B., Lin, L.B. and Ismail, K. (2009) A Steady-State Genetic Algorithm for Multi-Product Supply Chain Network Design. Computers & Industrial Engineering, 56, 521-537. http://dx.doi.org/10.1016/j.cie.2007.05.012
Abbas, H., Hussein, M. and Etman, M. (2011) A Hybrid Genetic Algorithm Approach for Optimizing Dynamic Multi-Commodity Supply Chains. Proceedings of the 41st International Conference on Computers & Industrial Engineering, Los Angeles, 23-25 October 2011, 154-159.
Seyedyaser-Mohammad, B., Desa, I. and Wibowo, A. (2012) Genetic Algorithm Enhancement to Solve Multi Source Multi Product Flexible Multistage Logistics Network. International Journal of Computer Science Issues, 9, 157-165.
Seyed, H. and Reza, P. (2014) Two Metaheuristics to Solve a Multi-Item Multiperiod Inventory Control Problem under Storage Constraint and Discounts. The International Journal of Advanced Manufacturing Technology, 69, 1671-1684.
Majid, R., Mahdi, B. and Reza, T.M. (2013) A New Multi-Objective Stochastic Model for a Forward/Reverse Logistic Network Design with Responsiveness and Quality Level. Applied Mathematical Modeling, 37, 328-344. http://dx.doi.org/10.1016/j.apm.2012.02.032
Pinto, E.G. (2004) Supply Chain Optimization Using Multi-Objective Evolutionary Algorithms. Department of Industrial and Manufacturing Engineering, the Pennsylvania State University, University Park, 15-26.
Collette, Y. and Siarry, P. (2002) Optimisation Multiobjectif. Editions Eyrolles, Paris.
Kirkpatrick, S., Gelatt, C.D. and Vecchi, M.P. (1983). Optimization by Simulated Annealing. Science, 220, 671-680. http://dx.doi.org/10.1126/science.220.4598.671
Metropolis, N., Rosenbluth, A.W., Rosenbluth, M.N., Teller, A.H. and Teller, E. (1953) Equation of State Calculations by Fast Computing Machines. The Journal of Chemical Physics, 21, 1087-1092. http://dx.doi.org/10.1063/1.1699114
Collins, N.E., Egelese, R.W. and Golden, B.L. (1988) Simulated Annealing—An Annotated Bibliography. American Journal of Mathematical and Management Sciences, 8, 209-307. http://dx.doi.org/10.1080/01966324.1988.10737242
Eglese, R. (1990) Simulated Annealing: A Tool for Opeational Research. European Journal of Operational Research, 46, 271-281. http://dx.doi.org/10.1016/0377-2217(90)90001-R
Castillo-Villar, K.K., Smith, N.R. and Simonton, J.L. (2012) The Impact of the Cost of Quality on Serial Supply-Chain Network Design. International Journal of Production Research, 50, 5544-5566. http://dx.doi.org/10.1080/00207543.2011.649802
Holland, J. and Arbor, A. (1975) Adaptation in Natural and Artificial Systems. University of Michigan Press, Ann Arbor.
Michel, G. and Jean-Yves, P. (2010) Handbook of Metaheuristics. International Series in Operations Research & Management Science, Springer, Berlin.
Sowmya Danalakshmi, C. Lecturer, Karpagam College of Engineering, Coimbatore-641032.
Lin, L., Gen, M. and Wang, X. (2007) A Hybrid Genetic Algorithm for Logistics Network Design with Flexible Multistage Model. International Journal of Information Systems for Logistics and Management, 3, 1-12.
Sourirajan, K., Ozsen, L. and Uzsoy, R. (2009) A Genetic Algorithm for a Single Product Network Design Model with Lead Time and Safety Stock Considerations. European Journal of Operational Research, 197, 599-608. http://dx.doi.org/10.1016/j.ejor.2008.07.038
Syarif, A. (2005) Hybrid Genetic Algorithm for Multi-Time Period Production/Distribution Planning. Computers & Industrial Engineering, 48, 799-809.