Date of Award


Publication Type

Master Thesis

Degree Name



Industrial and Manufacturing Systems Engineering


Cost of Quality, Quality loss function


Micheal Wang




Food industry is one of the most important industries for human society. It has also contributes in the economical development of local economic. The optimization of interests of parties in the industry, or the food supply chain system, is critical. In this thesis, the scenario of one producer, one retailer and on customer has been studied, with the consideration of all tangible and intangible costs occurs within the supply chain system. In this thesis, three models have been developed to evaluate the performance of the food supply chain system under different organization functions: producer with retailer functions, producer with no retailer functions, and retailer with no production functions. Their performance is evaluated with the respect to the food quality of nutrition value, physical sense quality, and the opportunity cost of food product risks. Cost of quality and quality loss function has been applied in this model to identify and quantify some of the costs in the system.
Based on the results from the thesis, the proposed models are feasible representation of costs within the food supply chain system. With the changes of different variables in the model, characteristics of different food product and the needs of different parties and business model could be presented. By compare the result from proposed models with other existing models, this thesis proposed a model that could save between 1-97% in overall cost, and 96-99% in overall intangible costs in the food supply chain system.