Abstract
In 2018, Chen and Chou proposed a jointly design model with manufacturing quantity, specification limits, process mean, and the parameters of X-bar control chart based on the specified process capability index Cpm or Cpmk value. This integrated model is a generalization of economic manufacturing quantity (EMQ) model with statistical quality control chart. In this study, the author presents the practical application of Chen and Chou’s model for the manufacturer. The manufacturer can apply these parameters in the design of a variable single rectifying inspection plan for the output product before shipping to the customer and the determination of the stock quantity for shipment to the customer in the newsvendor problem.
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