Relations between nX control chart design variables and production control

This paper develops analytic relationships between the design variables of an nX quality control chart and the production variables for a single-item, stochastic demand production system. Practical applications of the models developed are presented. These include, among others, finding an nX chart design to achieve certain inventory service level for a given production policy, or finding a production policy that maximizes the service level given an nX chart design. The models presented also permit studying the effect of improving the production and quality control systems through a continuous improvement program.