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Joint Design of Economic Manufacturing Quantity, Sampling Plan and Specification Limits

Author

Listed:
  • Chen Chung-Ho

    (Department of Industrial Management, Southern Taiwan University of Technology, 1 Nan-Tai Street, Yung-Kang City, Tainan 710, Taiwan)

  • Chou Chao-Yu

    (Department of Industrial Engineering and Management, National Yunlin University of Science and Technology, Touliu 640, Taiwan)

Abstract

In this paper we propose an extension of the problem to determine the economic design of a Type I continuous sampling plan (CSP-1 plan) and the economic manufacturing quantity (EMQ) under imperfect quality investigated in Chen et al. (Economic Quality Control 15: 137-146, 2000), where the economic objective equals the total inventory cost including the set-up cost, the holding cost and the expected quality loss. The extension refers to the economic specification limits. The problem can be formulated as a non-linear mixed-integer minimization problem. By solving it, the required level of product quality is obtained at minimum total inventory cost. A numerical example is given to illustrate the solution procedure.

Suggested Citation

  • Chen Chung-Ho & Chou Chao-Yu, 2002. "Joint Design of Economic Manufacturing Quantity, Sampling Plan and Specification Limits," Stochastics and Quality Control, De Gruyter, vol. 17(2), pages 145-153, January.
    • Handle: RePEc:bpj:ecqcon:v:17:y:2002:i:2:p:145-153:n:2
    DOI: 10.1515/EQC.2002.145
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