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Commit Time Decision For Measuring Demand Side Quality Costs With Limited Distribution Information

Author

Listed:
  • JINFENG YUE

    (Department of Management and Marketing, Jennings A. Jones College of Business, Middle Tennessee State University, Murfreesboro, TN 37132, USA)

  • MIN-CHIANG WANG

    (Department of Management and Decision Sciences, College of Business and Economics, Washington State University, Pullman, WA 99164-4736, USA)

  • ZHIMIN HUANG

    (School of Business, Adelphi University, Garden City, NY 11530, USA)

Abstract

Consider a single machine processing multiproducts situation when only the mean and standard deviation of processing time for each product are available. The bounds of optimal commit delivery time range are obtained. A decision of the robust commit delivery time is suggested. An extension to the situation with information of orders in queue is also discussed. Numerical examples show that the suggested decision performs well. The expected value of additional information, which measures the maximum amount a decision maker is willing to pay for knowledge of true distribution information, is small, and that further demonstrates the worthiness of the suggested robust decision.

Suggested Citation

  • Jinfeng Yue & Min-Chiang Wang & Zhimin Huang, 2004. "Commit Time Decision For Measuring Demand Side Quality Costs With Limited Distribution Information," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 435-452.
    • Handle: RePEc:wsi:ijitdm:v:03:y:2004:i:03:n:s021962200400115x
    DOI: 10.1142/S021962200400115X
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