The determination of economic production run length and manufacturing target by considering quality loss function

Abstract

Traditional economic manufacturing quantity (EMQ) model assumes that the perfect production for product. However, there possibly exists the defective product in the production process. In 1996, Chen and Chung presented the quality selection problem to the imperfect production system for obtaining the optimum production run length and target level. In 1998, Wu and Tang proposed the optimum manufacturing target based on Taguchi’s quadratic quality loss function. In this paper, we further integrate Chen and Chung’s and Wu and Tang’s models in the modified EMQ model for obtaining the optimum production run length and manufacturing target. The normal, uniform, and triangular quality characteristics are considered in the modified EMQ model. The asymmetric quadratic and linear quality loss functions are adopted for measuring the product quality. The numerical example and sensitivity analysis of parameters are provided for illustration.