Article ID: | iaor2005444 |
Country: | Netherlands |
Volume: | 5 |
Issue: | 3 |
Start Page Number: | 361 |
End Page Number: | 377 |
Publication Date: | Sep 2004 |
Journal: | Optimization and Engineering |
Authors: | Ohta Hiroshi, Rahim Abdur |
Keywords: | production, quality & reliability |
In this paper, we develop an integrated economic model for inventory and quality control problems, extending the work of Rahim and Rahim and Ben-Daya. The production process is subject to an assignable cause which shifts the process from an in-control state to an out-of-control state. We consider the shifts in both the process mean and the process variance. When a signal for an assignable cause is triggered, a search is initiated and is terminated upon finding the cause within a pre-specified target time. The process is then brought back to an in-control state by repair. However, if the assignable cause is not discovered within the pre-specified time, production is allowed to continue until the next sampling or warning, whichever occurs first. In this case, either the alarm is considered to be false with a probability of Type I error, or the assignable cause has not been eliminated with a probability of Type II error. In the latter case, the process produces products in an out-of-control state until the next sampling or warning, whichever occurs first. However, this state does not indicate any severe damage to the system. Joint