Consumers Risk Control in a Collaborative Supply Chain

A supply chain is a network of organizations involved in different processes and activities that produces value in the form of products and services in the hands of the ultimate consumers.This paper is to provide a strategic collaborative approach to risk and quality control in a cooperative supply chain by using a Neyman-Pearson quantile risk framework for the statistical control of risks. The paper is focused on the statistical quality control of a supplier and a producer, applying the traditional Neyman-Pearson theory to the control of quality in a supply chain environment. In our framework, the risks assumed by the parties in the supply chain depend on the organizational structure, the motivations and the power relationships that exist between members of the supply chain.