Abstract
In this work, the author proposes a optimal process mean setting for product with quality loss and process adjustment cost. Assume that the quality characteristic is exponentially distributed with parameter (l). The product quality loss is measured by adopting the asymmetric line quality loss function. The adjustment cost of process mean is assumed to be proportional to μ2 and the adjustment cost of process variance is assumed to be proportional to 1/σ2. One can obtain the optimal process mean by minimizing the expected total cost of product including the product quality loss and process adjustment cost. Finally, the numerical example and sensitivity analysis of some parameters are provided for illustration.
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