Economic Selection of Process Mean for a Filling Process with Quadratic Loss

摘要

The problem of determining the most profitable process mean is considered in situations where each outgoing item is inspected, and the items failing to the predetermined specification limits are reprocessed. Assuming that the quality characteristic is normally distributed, the process mean is obtained by maximizing the expected profit which involve selling price, production, inspection, reprocessing, and quality cost. We assume that the quality cost function is a quadratic function of the deviation from target value and reprocessing cost is proportional to the quality characteristic. A numerical example is presented.