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Considering Cost of Quality, a retailer (customer) Mr.Buyer enters into an agree

ID: 414596 • Letter: C

Question

Considering Cost of Quality, a retailer (customer) Mr.Buyer enters into an agreement with (supplier) HP to provide them with 2,000 Laptop computers. HP must make sure all computers meet specifications before shipping them to Mr. Buyer, which in turn sells each of the laptops to their retail customers. Provide at least 4 examples of internal and external failure costs associated with supplier (HP) and customer (Mr.Buyer). (Internal Failure- Customer, example- loss of retail sales productivity) and (External Failure- Supplier, Example- Technical support calls from customers)

Explanation / Answer

Internal failure: Customer is responsible for these failures.

External failures: Seller is responsible for these failures.

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