Findings in Operations Science Reported from Shanghai University (The role of business insurance in managing a manufacturer’s product quality risk)

By a News Reporter-Staff News Editor at Science Letter -- Current study results on Science - Operations Science have been published. According to news reporting out of Shanghai, People's Republic of China, by NewsRx editors, research stated, "We consider a risk-averse manufacturer that decides whether to accept an order from a retailer and can purchase a business insurance contract."

Our news journalists obtained a quote from the research from Shanghai University, "Once the order is delivered to the retailer, a random part of it would turn out to be defective associated with external failure cost."

According to the news editors, the research concluded: "We find that business insurance can substitute and complement with an operational strategy that shares external failure cost or reduces the probability of product defects occurring."

For more information on this research see: The role of business insurance in managing a manufacturer's product quality risk. Operations Research Letters, 2017;45(6):635-641. Operations Research Letters can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Operations Research Letters - www.journals.elsevier.com/operations-research-letters/)

Our news journalists report that additional information may be obtained by contacting L. Xie, Shanghai Univ Finance & Econ, Sch Int Business Adm, Shanghai 200433, People's Republic of China. Additional authors for this research include H. Wei and J. Chen (see also Science - Operations Science).

Keywords for this news article include: Shanghai, People's Republic of China, Asia, Operations Science, Science, Shanghai University.

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