Mathematical modelling of the quality-based order assignment problem

Abstract

The increasing global comp etition forces companies to reduce their pro duction costs and increase the quality of their pro ducts at the same time. Due to individualized customer needs, there can b e numerous customer requirements to the pro ducts that need to b e fulfilled to ensure customer satisfaction. Therefore, many companies established a quality management (QM) system, which aims for continuous improvement of p erformance regarding system, pro cess, and pro duct quality. Basic concepts and requirements for QM systems can be found in the ISO 9000 standards series. A main principle hereby is the customer orientation so that individualized customer needs can be considered within the design of internal quality testing gates. Within this technical report we present two approaches to model the product to customer order assignment problem (PCO-AP) mathematically as a 0,1 assignment problem (0,1- AP) and generalized assignment problem (GAP).