IDEAS home Printed from https://ideas.repec.org/a/taf/japsta/v32y2005i8p813-822.html
   My bibliography  Save this article

A note on determining an optimal target by considering the dependence of holding costs and the quality characteristics

Author

Listed:
  • Yuehjen Shao
  • John Fowler
  • George Runger

Abstract

Products that do not meet the specification criteria of an intended buyer represent a challenge to the producer in maximizing profits. To understand the value of the optimal process target (OPT) set at a profit-maximizing level, a model was developed by Shao et al. (1999) involving multiple markets and finished products having holding costs independent from their quality. Investigation in cases considered previously has involved holding costs as a fixed amount or as a normal random variable independent of the quality characteristic (QC) of the product. Less specific in nature, this study considers more general cases in which the HC can be a truncated normal random variable, which is dependent on the QC of the product.

Suggested Citation

  • Yuehjen Shao & John Fowler & George Runger, 2005. "A note on determining an optimal target by considering the dependence of holding costs and the quality characteristics," Journal of Applied Statistics, Taylor & Francis Journals, vol. 32(8), pages 813-822.
    • Handle: RePEc:taf:japsta:v:32:y:2005:i:8:p:813-822
    DOI: 10.1080/02664760500080066
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02664760500080066
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02664760500080066?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. D. C. Bettes, 1962. "Finding an Optimum Target Value in Relation to a Fixed Lower Limit and an Arbitrary Upper Limit," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 11(3), pages 202-210, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hariga, Moncer A. & Al-Fawzan, M.A., 2005. "Joint determination of target value and production run for a process with multiple markets," International Journal of Production Economics, Elsevier, vol. 96(2), pages 201-212, May.
    2. Bowling, Shannon R. & Khasawneh, Mohammad T. & Kaewkuekool, Sittichai & Cho, Byung Rae, 2004. "A Markovian approach to determining optimum process target levels for a multi-stage serial production system," European Journal of Operational Research, Elsevier, vol. 159(3), pages 636-650, December.
    3. Selim, Shokri Z. & Al-Zu'bi, Walid K., 2011. "Optimal means for continuous processes in series," European Journal of Operational Research, Elsevier, vol. 210(3), pages 618-623, May.
    4. Shao, Yuehjen E. & Fowler, John W. & Runger, George C., 2000. "Determining the optimal target for a process with multiple markets and variable holding costs," International Journal of Production Economics, Elsevier, vol. 65(3), pages 229-242, May.
    5. Roan, Jinshyang & Gong, Linguo & Tang, Kwei, 1997. "Process mean determination under constant raw material supply," European Journal of Operational Research, Elsevier, vol. 99(2), pages 353-365, June.
    6. Pulak, M. F. S. & Al-Sultan, K. S., 1996. "The optimum targeting for a single filling operation with rectifying inspection," Omega, Elsevier, vol. 24(6), pages 727-733, December.
    7. Goethals, Paul L. & Cho, Byung Rae, 2011. "Reverse programming the optimal process mean problem to identify a factor space profile," European Journal of Operational Research, Elsevier, vol. 215(1), pages 204-217, November.
    8. Mohammad A. M. Abdel-Aal & Shokri Z. Selim, 2019. "A Generalized Process Targeting Model and an Application Involving a Production Process with Multiple Products," Mathematics, MDPI, vol. 7(8), pages 1-17, August.
    9. Sankle R. & Singh J.R. & Mangal I.K., 2013. "Sequential Test for Poisson Distribution under Measurement Error," Stochastics and Quality Control, De Gruyter, vol. 28(1), pages 9-14, October.
    10. Darwish, M.A. & Abdulmalek, F. & Alkhedher, M., 2013. "Optimal selection of process mean for a stochastic inventory model," European Journal of Operational Research, Elsevier, vol. 226(3), pages 481-490.
    11. Lee, Min Koo & Elsayed, Elsayed A., 2002. "Process mean and screening limits for filling processes under two-stage screening procedure," European Journal of Operational Research, Elsevier, vol. 138(1), pages 118-126, April.
    12. Williams, William W. & Tang, Kwei & Gong, Linguo, 2000. "Process improvement for a container-filling process with random shifts," International Journal of Production Economics, Elsevier, vol. 66(1), pages 23-31, June.
    13. 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.
    14. Al-Sultan, K. S. & Pulak, M. F. S., 2000. "Optimum target values for two machines in series with 100% inspection," European Journal of Operational Research, Elsevier, vol. 120(1), pages 181-189, January.
    15. Roan, Jinshyang & Gong, Linguo & Tang, Kwei, 2000. "Joint determination of process mean, production run size and material order quantity for a container-filling process," International Journal of Production Economics, Elsevier, vol. 63(3), pages 303-317, January.
    16. Lee, Min Koo & Kwon, Hyuck Moo & Hong, Sung Hoon & Kim, Young Jin, 2007. "Determination of the optimum target value for a production process with multiple products," International Journal of Production Economics, Elsevier, vol. 107(1), pages 173-178, May.
    17. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:japsta:v:32:y:2005:i:8:p:813-822. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CJAS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.