Integration of Quality Cost into a Total Cost Model for a Distribution Network

Abstract Effective supply chain management requires integration of the interconnected operational steps from raw material supplier through production, distribution, and final product delivery. These links must operate effectively and efficiently for the supply chain to achieve its primary objective: increased customer value at each step. Distribution systems are particularly critical components in supply chain networks since they are often the last direct interface with the customer. As a result, distribution error in the supply chain cannot be corrected and will impact customer satisfaction, ultimately leading to possible lost sales or customers.