Journal of Korean Society for Quality Management (품질경영학회지)
- Volume 26 Issue 3
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- Pages.46-59
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- 1998
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- 1229-1889(pISSN)
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- 2287-9005(eISSN)
Determining the most profitable process mean for a production process where rejected item is sold at a reduced price or reworked
불합격 제품을 재가공하거나 할인판매하는 생산공정에 대한 공정평균의 경제적 결정
Abstract
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.
Keywords