Final answer:
To manage the costs of poor quality, supply chain management should focus on preventive measures like adopting new technologies, just in time delivery,
efficient inventory management, after-sales service, and handling of customer complaints.
Step-by-step explanation:
Supply chain management plays a vital role in the containment of the costs of poor quality.
One key way this is achieved is through preventive measures, which include adopting new technologies that can improve the efficiency of production and reduce defects, thereby potentially leading to a rightward or downward shift in the supply curve.
In addition, quality control is significantly enhanced with systems such as just in time delivery, which ensures that any defects in parts are identified swiftly before they can affect a larger portion of the production process.
After-sales service and customer complaints handling are also essential for maintaining high-quality standards and customer satisfaction, which can, in turn, affect the company's brand reputation and long-term demand.
Meanwhile, inventory management is crucial in reducing costs and waste associated with storing defective products and maintaining an efficient supply chain.
Perfecting these aspects of the supply chain is about more than just addressing immediate quality issues; it's about building resilience into systems to ensure that during national emergencies or other disruptions, the supply chain can remain robust.
Additionally, improving labor policies and investing in the workforce contributes to a stronger, more reliable supply chain, fostering a culture of quality and consistent improvement.