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Joint determination of optimum variable and attribute target means

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  • F.J. Arcelus
  • M.A. Rahim

Abstract

This article considers the problem of joint control of attribute and variable quality characteristics of a given product. Items are acceptable if they meet the specifications for both types of quality characteristics at the same time. Otherwise, the items are sold as scrap at reduced prices. The objective is to determine simultaneously the target values for each characteristic so as to maximize the expected profit per item. Several item‐by‐item quality‐inspection plans are formulated on the basis of various inspection strategies. These strategies are defined in terms of whether the inspection is to be carried out simultaneously for both characteristics, or sequentially, or whether inspection for one of the characteristics is to be ignored. All these plans are shown to differ in terms of their profitability. However, they all yield equivalent quality standards. A numerical example is provided to illustrate the application of these models.

Suggested Citation

  • F.J. Arcelus & M.A. Rahim, 1991. "Joint determination of optimum variable and attribute target means," Naval Research Logistics (NRL), John Wiley & Sons, vol. 38(6), pages 851-864, December.
    • Handle: RePEc:wly:navres:v:38:y:1991:i:6:p:851-864
    DOI: 10.1002/nav.3800380605
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    References listed on IDEAS

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    1. Tapiero, Charles S. & Ritchken, Peter H. & Reisman, Arnold, 1987. "Reliability, pricing and quality control," European Journal of Operational Research, Elsevier, vol. 31(1), pages 37-45, July.
    2. Carlsson, Olle, 1989. "Economic selection of a process level under acceptance sampling by variables," Engineering Costs and Production Economics, Elsevier, vol. 16(1), pages 69-78, February.
    3. Arcelus, F. J. & Rahim, M. A., 1990. "Optimal process levels for the joint control of variables and attributes," European Journal of Operational Research, Elsevier, vol. 45(2-3), pages 224-230, April.
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    Cited by:

    1. Hong, Sung Hoon & Cho, Byung Rae, 2007. "Joint optimization of process target mean and tolerance limits with measurement errors under multi-decision alternatives," European Journal of Operational Research, Elsevier, vol. 183(1), pages 327-335, November.
    2. Chang, Yen-Chang & Liu, Ching-Ti & Hung, Wen-Liang, 2009. "Optimization of process parameters using weighted convex loss functions," European Journal of Operational Research, Elsevier, vol. 196(2), pages 752-763, July.
    3. Lee, Min Koo & Jang, Joong Soon, 1997. "The optimum target values for a production process with three-class screening," International Journal of Production Economics, Elsevier, vol. 49(2), pages 91-99, April.

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