In literature; the cost of poor quality as a result of imperfections of a vendorâ€™s incoming input materials and the errors of the manufacturing process were investigated (Tagaras; 1996). An optimization model including appointment of the cost of quality between the two parties as buyers and suppliers was also analyzed (Baiman; 2000).
However; models optimizing total quality costs including each quality cost components has not been studied extensively. In this study; a generalized optimization model for a multistage production system based on quality costs as conformance and nonconformance costs has been developed.
Keywords: Quality cost; modeling; production systems