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.