Evaluation of a marketable quality and profitability model considering general distribution

Abstract

In this paper, we provide an evaluation mode for both: the quality aspect of corporations (marketable quality) and the profitability. We apply the real values of some leading manufacturing corporations in Japan to our proposed model to analyze its accuracy. From the analysis, we concluded that the theoretical and real standard values of the marketable quality indicator (the rate of operation at the break-even point) were both 0.6 (that is 60%). We obtained a general distribution of profitability by using the general profitability function and the marketable quality indicator. By the general distribution of profitability we are able to deal with problems that may happen in the real situation of corporations.