Optimal process mean selection by considering trade-off model with product quality loss and process adjustment cost

Abstract

In this study, the author considers the problem about economic process mean selection of product with the quality loss and process adjustment cost. Assume that the quality characteristic is normally distributed with process mean (μ) and variance (σ 2). The product quality loss is measured by adopting the asymmetric quadratic and line quality loss function. The adjustment cost of process mean is assumed to be proportional to μ 2 and the adjustment cost of process variance is assumed to be proportional to 1/σ 2. One can obtain the optimal process mean by minimizing the expected total cost of product including the product quality loss and process adjustment cost. Finally, the numerical example and sensitivity analysis of parameters are provided for illustration.