Abstract
The purpose of this paper is to develop a model for simultaneously selecting the optimal target means for both a variables and an attribute quality characteristic. The objective is to maximize the expected profit per item. The expected profit per item depends on the revenue, the production cost, and the cost of maintaining the desired quality level. Optimality conditions are derived for the two target mean settings, from which a computational algorithm is constructed. A numerical example is provided to illustrate the application of the model.
Additional information
Notes on contributors
F. J. Arcelus
Dr. Arcelus is a Professor in the Faculty of Administration.
M. A. Rahim
Dr. Rahim is a Professor in the Faculty of Administration. He is a Member of ASQC.