Quality investment and cost-sharing in the manufacturer-supplier cooperative development for complex products

To consider the efficiency in determining quality investment and cost-share in the manufacturer-supplier cooperative development for complex products, a minimum maximization model is build. To achieve this aim, expressions of quality level, quality-gain and cost are all proposed first. Then cost-sharing by Shapley value method is given. Next, the cooperative efficiency is defined, and the minimum maximization model with maximizing the minimum of each partner´s cooperative efficiency is established. Moreover, the algorithm of resolving the model is devised. The results of the model are the optimum resolution for quality investment and cost-share in the cooperative development.