Joint Design of Economic Manufacturing Quantity, Sampling Plan and Specification Limits

Chen Chung-Ho and Chou Chao-Yu
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Chen Chung-Ho: Department of Industrial Management, Southern Taiwan University of Technology, 1 Nan-Tai Street, Yung-Kang City, Tainan 710, Taiwan
Chou Chao-Yu: Department of Industrial Engineering and Management, National Yunlin University of Science and Technology, Touliu 640, Taiwan

Stochastics and Quality Control, 2002, vol. 17, issue 2, 145-153

Abstract: In this paper we propose an extension of the problem to determine the economic design of a Type I continuous sampling plan (CSP-1 plan) and the economic manufacturing quantity (EMQ) under imperfect quality investigated in Chen et al. (Economic Quality Control 15: 137-146, 2000), where the economic objective equals the total inventory cost including the set-up cost, the holding cost and the expected quality loss. The extension refers to the economic specification limits. The problem can be formulated as a non-linear mixed-integer minimization problem. By solving it, the required level of product quality is obtained at minimum total inventory cost. A numerical example is given to illustrate the solution procedure.

Keywords: Economic Manufacturing Quantity (EMQ); Type I Continuous Sampling Plan (CSP–1 Plan); Average Outgoing Quality (AOQ); Average Outgoing Quality Limit (AOQL); Average Fraction Inspected (AFI); Specification Limits; Taguchi's Quality Loss Function (search for similar items in EconPapers)
Date: 2002
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DOI: 10.1515/EQC.2002.145

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