Applying Quality Loss Function in the Design of Economic Specification Limits for Triangular Distribution

Abstract

In 1987, Kapur and Wang presented that the inspection in an on-line quality control system may be conducted as a short term approach to reduce variance of the items shipped to the customers. They used Taguchi's quality loss function for designing the optimal specification limits. The normal and log-normal quality characteristics are used in their model. In this paper, we further extend Kapur and Wang's model for the triangular quality characteristic. For this modified Kapur and Wang's model, the managerial implication is that by using the triangular distribution we determine the optimum inspection policy for product assembly including two or more parts follow uniform distribution, control the nonconforming items prevented to be shipped to the customer, and decrease the total loss to the society.