Optimal target values for a filling process when inspection is based on a correlated variable

Optimal target values for a filling process when inspection is based on a correlated variable

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Article ID: iaor19941306
Country: Netherlands
Volume: 32
Issue: 3
Start Page Number: 327
End Page Number: 334
Publication Date: Nov 1993
Journal: International Journal of Production Economics
Authors: ,
Keywords: filling process
Abstract:

The problem of selecting optimal target values for the mean of the quantity Y of material in a container and the cutoff value on a correlated variable X is considered for a filling process in which a container is nonconforming if its Y value is less than the lower specification limit and inspection is based on X instead of Y. A profit model is constructed which involves selling price and filling, rework, inspection, and penalty costs. Assuming that X and Y are jointly normally distributed, a method of finding the optimal process mean and the cutoff value on X is presented. An example from the cement industry is presented.

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