MINIMIZING RECALL RISK BY COLLABORATIVE DIGITIZED INFORMATION SHARING BETWEEN OEM AND SUPPLIERS: A SIMULATION BASED INVESTIGATION

摘要

Many Original Equipment Manufacturers (OEMs) and their suppliers face recall and warranty risks due to complex supply chains and products. OEMs and suppliers can hardly take appropriate actions for mitigating these quality risks due to lack of product history data and understanding of their probability. In this work, the product consists of two components delivered by two Tier II suppliers. Probabilities of OEM's acceptance, rework and rejection of the assembled product by a Tier I supplier and probabilities of acceptance, warranty and recall are calculated combining Bayesian Belief Network and simulation of a digitized supply chain. Results show that sharing of incoming quality information between an OEM and Tier I supplier and decision models to estimate warranty and recall probabilities can help in assessing quality improvement benefits to minimize recall risks. Suitable quality improvement contracts between an OEM and Tier I supplier can be designed using embedded product quality data.