The problem of selecting optimal target values for the mean of the quality characteristic of interest for a production process in which an item is sold in one of two market with different profit / cost structures or reworked. Two profit models are co...
The problem of selecting optimal target values for the mean of the quality characteristic of interest for a production process in which an item is sold in one of two market with different profit / cost structures or reworked. Two profit models are constructed which involve four profit / cost components: profit, production, inspection, and rework costs. Assumed that the quality characteristic of interest is normally distributed, methods of finding the most profitable process mean are presented and a numerical example is given.