Lu, Lauren Xiaoyuan; Mieghem, Jan A. Van; Savaskan, R. Canan - In: Manufacturing & Service Operations Management 11 (2009) 2, pp. 254-273
We study how rework routing together with wage and piece-rate compensation can strengthen incentives for quality. Traditionally, rework is assigned back to the agent who generates the defect (in a self-routing scheme) or to another agent dedicated to rework (in a dedicated routing scheme). In...