
98 ◾ Xiande Zhao, Yina Li, BarbaraB.Flynn, and Stephen Ng
Table 6.4 Costs of Quality in the Chinese Dairy Supply Chain (Continued)
Costs of Quality
Prevention Cost Appraisal Cost Internal Failure Cost External Failure Cost
Centralized feed purchasing
Development of
identication and
traceability systems for
individual cattle
Investment in automated
milking and processing
equipment
Investment in refrigerated
containers
Raw milk dealers Outsourced suppliers
Independent third-party
testing
Emphasis on quality, rather
than quantity
Selection based on quality,
rather than price
Process training and
education
Investment in testing
equipment
Cost of testing