Industrial quality : a missing economic variable

Abstract: "Industrial quality is presented as a direct result of manufacturing practices (e.g. tolerance allocation, process selection, inspection procedures). A quality indicator is developed that allows for the computation of a function representing the cost of an industrial product versus its quality level. This cost function is then incorporated in an economic model that estimates the consumer's demand for the product as a function of both its price and quality level. The profit maximizing values of the price and quality level are derived, and in turn indicate the optimum production mode."