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Determination of Optimal Mean Value and Screening Limit for a Production Process with Logistic Function  

Hong, Sung Hoon (Department of Industrial and Information Systems Engineering, Chonbuk National University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.29, no.3, 2003 , pp. 239-246 More about this Journal
Abstract
Individual items are produced continuously from an industrial process. Each item is checked to determine whether it satisfies a lower screening limit for the quality characteristic which is the weight of an expensive ingredient. If it does, it is sold at a regular price; if it does not, it is reprocessed or sold at a reduced price. The process mean may be adjusted to a higher value in order to reduce the proportion of the nonconforming items. Using a higher process mean, however, may result in a higher production cost. In this paper, the optimal process mean and lower screening limit are determined in situations where the probability that an item functions well is given by a logistic function of the quality characteristic. Profit models are constructed which involve four price/cost components; selling prices, cost from an accepted nonconforming item, and reprocessing and inspection costs. Methods of finding the optimal process mean and lower screening limit are presented and numerical examples are given.
Keywords
logistic function; lower screening limit; profit models; optimal process mean;
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