The Optimization of Supply Chain Components' Quality Characteristics Based on the Structural Equation Model

Aiming to quality character management under the "Main Manufacturer-Supplies" model, the structural equation model and programming model are set up to evaluate and optimize the supply chain components' quality characteristics. This chapter can be divided into 4 parts: (I) The quality loss function: We design the quality loss functions according to 3 quality types as input for the model; (2) The structural equation model: We establish the two-order factor model to illustrate the production model and evaluate the quality contribution weight for the product's quality; (3) The programming model: we set up the programming model to optimize the quality performance based on the evaluation results; (4) A case study: An automobile production case is researched to show the effectiveness of the method. This chapter provides a new way to evaluate and improve the supply chain components' quality characters.