1. In an agreement between a supplier and a customer, the supplier must ensure that all parts are within specification before shipment to the customer. What is the effect on the cost of quality to the customer?

According to business analyst in certain areas, it is known that no businesses can run not without making a profit, and profit comes from the shoppers. To please the purchasers by delivering the products or services. Also in cases where suppliers couldn’t dispatch the products or services on timely to its customers, customers are more likely to modify the corporate or products in order that there'll be rather more negative effects when it involves the value of quality to suppliers. The most important impacts of not meeting predetermined promises to its customers for suppliers are as follows:

· Returned goods

. Liability claim

· Reworking costs

· Warranty costs

· Loss of goodwill, etc.

These steps are taken in many cases to confirm that each part is within tolerance, the suppliers have to add extra efforts to examine each part before conducting shipment to its customers. These costs are associated with delivering substandard products or services to customers so sometimes it's also called external failure to the organization. In my view, these costs are to be avoided or reduced so as to achieve a competitive advantage within the market.

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