
Chinese Milk Powder Crisis ◾ 103
milk powder recalls to investigate supply chain quality and product recalls in
China. Using case studies, media reports, interviews, and anecdotal information
about the Chinese melamine-tainted milk powder crisis and Chinese major dairy
companies, we established that companies that have a more vertically integrated
supply chain and a better relationship with upstream suppliers, as well as better
interorganization and intraorganization QA systems, invest more in prevention and
appraisal costs in order to prevent the potential quality risks. us, their internal
and external failure costs are signicantly reduced. ...