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Economic Selection of Optimum Process Mean for a Mixture Production Process  

Lee, Min-Koo (Department of Information and Statistics, Chungnam National University)
Publication Information
Journal of Korean Society for Quality Management / v.33, no.4, 2005 , pp. 111-116 More about this Journal
Abstract
This paper considers the problem of optimally choosing the sub-process means of a mixture production process where two important ingredients are mixed. The quantity of each ingredient is controlled through each corresponding sub-process. The values of the sub-process mean directly affect the defective rate, production, scrap and reprocessing costs for the mixture production process. After inspecting every incoming item, each conforming item is sold in a regular market for a fixed price and any nonconforming item is scraped. A model is constructed on the basis of the selling price, production, inspection, and scrap and reprocessing costs. The goal is to determine the optimum sub-process mean values based on maximizing expected profit function relating selling price and cost components. A method of finding the optimum sub-process means is presented when the quantities of the two ingredients are assumed to be normally distributed with known variances. A numerical example is given and numerical studies are performed.
Keywords
Mixture Production Process; Optimum Process Mean; Sub-process Means;
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