2004
DOI: 10.1007/s00170-003-1964-8
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Determining optimal process mean of two-market products

Abstract: The determination of the optimal mean for a manufacturing process involves a complex and financially important decision. This study examines a situation where a product is classified into two grades with respect to market specifications. It is reasonably assumed that each grade has its price and manufacturers cannot produce every item to a good grade due to the uncontrollable variation of product performance. This study attempts to determine the optimal process mean that gives a maximum profit to the manufactu… Show more

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Cited by 16 publications
(4 citation statements)
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References 23 publications
(26 reference statements)
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“…The designed method reduced the manufacturing cost and used to solve other stochastic optimization problems. Teeravaraprug 7 had demonstrated a zero-one programming model to integrate the nominal values of components and assemblies within the framework of tolerance synthesis. The results proved that the assembly mean may not be equal to the preferable mean; however, the loss function was used to narrow down the bias and variation of the assembly.…”
Section: Literature Reviewmentioning
confidence: 99%
“…The designed method reduced the manufacturing cost and used to solve other stochastic optimization problems. Teeravaraprug 7 had demonstrated a zero-one programming model to integrate the nominal values of components and assemblies within the framework of tolerance synthesis. The results proved that the assembly mean may not be equal to the preferable mean; however, the loss function was used to narrow down the bias and variation of the assembly.…”
Section: Literature Reviewmentioning
confidence: 99%
“…According to the author, product quality is the society's loss when the product is sold to the customer. [7] adopted the quadratic quality loss function for evaluating the quality cost of a product for two different markets and obtained the optimum process mean based on maximizing the expected profit per item. Most of the works have addressed the 100% screening in the filling or canning process.…”
Section: Literature Reviewmentioning
confidence: 99%
“…One focuses on product target or product tolerance determination (Rahim and Shaibu 2000). The other one concentrates on process mean or process tolerance determination (Rahim, Bhadury, and Al-Sultan 2002;Teeravaraprug 2005;Jeang, Chung, and Hsieh 2007;Kuskay and Bulutcu 2011). Both approaches conceive of these determinations as independent steps (Hsu et al 2003;Feng and Kapur 2006;Chen and Lai 2007;Chen and Michael 2009), consider process specification as a variable in addition to process mean; however, this variable is included mainly for the purpose of online inspection sampling to screen nonconforming products during the production process.…”
Section: Introductionmentioning
confidence: 99%