Hwang, Iny; Radhakrishnan, Suresh; Lixin (Nancy) Su - In: Management Science 52 (2006) 10, pp. 1472-1482
for defective units identified during inspection or pays the unit price for good units. In the certification regime, the … supplier obtains vendor certification and the buyer pays the unit price for all units supplied. The inspection technology and … implements the supplier's high-quality and low-inspection. The supplier's expected profit is greater than his reservation profit …