Product Quality In Business Simulations

Abstract

Quality is defined as the absence of defects. Models and procedures that address product quality in production, in a modeled market, and in a real market are presented. For production, the proposed model makes defects an exponential function of a floor, a ceiling, a number of causes, a rate of reaction, and a random variable. For a modeled market, the proposed model makes lost demand a constant multiple of each defective unit sold. For a real market, the proposed caveat emptor procedure of giving no points to the purchase of defective products has two variants: informed and uninformed. The all-or-none principle of inspection is considered, and a rule for applying it to the modeled market is developed. This rule may apply also to real-world problems