Joint Economic Selection Of Target Mean And Variance

This paper considers the problem of selecting the most economical target mean and variance for a continuous production process, In earlier studies, many authors considered the problem of finding an optimal target mean assuming that the variance is known. The problem with this assumption is the diffi...

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Main Author: Rahim, M.A. (author)
Other Authors: Bhadury, J (author), Al-Sultan, K.S. (author), unknown (author)
Format: article
Published: 2020
Subjects:
Online Access:https://eprints.kfupm.edu.sa/id/eprint/2392/1/joint_economic_selection_of_target_mean__rahim_isi_000175960700001.pdf
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author Rahim, M.A.
author2 Bhadury, J
Al-Sultan, K.S.
unknown
author2_role author
author
author
author_facet Rahim, M.A.
Bhadury, J
Al-Sultan, K.S.
unknown
author_role author
dc.creator.none.fl_str_mv Rahim, M.A.
Bhadury, J
Al-Sultan, K.S.
unknown
dc.date.*.fl_str_mv 2020
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv https://eprints.kfupm.edu.sa/id/eprint/2392/1/joint_economic_selection_of_target_mean__rahim_isi_000175960700001.pdf
Joint Economic Selection Of Target Mean And Variance. ENGINEERING OPTIMIZATION, 34. pp. 1-14.
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv TAYLOR FRANCIS LTD
dc.relation.none.fl_str_mv https://eprints.kfupm.edu.sa/id/eprint/2392/
dc.rights.*.fl_str_mv info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Systems
dc.title.none.fl_str_mv Joint Economic Selection Of Target Mean And Variance
dc.type.none.fl_str_mv Article
PeerReviewed
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description This paper considers the problem of selecting the most economical target mean and variance for a continuous production process, In earlier studies, many authors considered the problem of finding an optimal target mean assuming that the variance is known. The problem with this assumption is the difficulty or impossibility of setting a target variance. Taguchi suggested a two-step procedure: first, set the target mean; then, find the smallest variance through redesign or experiment (resetting the level of factors). In this study, three new approaches are suggested for the economic selection of a target variance integrated with a target mean. In the first approach, an expected profit maximization criterion is used to obtain the target mean and variance simultaneously. The example used to illustrate this approach is a filling process where the quality characteristic is assumed to be normally distributed. The containers that are underfilled can be sold in a secondary market at a price of $P-L per can, those within specification can be sold at a price of $P-0 per can, and those over the upper specification limit can be sold at a price of $P-U per can. In the second approach, a minimum cost criterion based on the Taguchi loss function is used: first, the processes optimized for the variance; then, an optimal process mean is obtained. In the third approach, an economic model for the selection of the target variance is developed, using both customer and producer costs to minimize societal loss independent of the product quality characteristic distribution.
eu_rights_str_mv openAccess
format article
id KFUPM_d79904b8705fcb16a9e7310ec95870b9
identifier_str_mv Joint Economic Selection Of Target Mean And Variance. ENGINEERING OPTIMIZATION, 34. pp. 1-14.
language_invalid_str_mv en
network_acronym_str KFUPM
network_name_str King Fahd University of Petroleum and Minerals
oai_identifier_str oai::2392
publishDate 2020
publisher.none.fl_str_mv TAYLOR FRANCIS LTD
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repository.name.fl_str_mv
repository_id_str
spelling Joint Economic Selection Of Target Mean And VarianceRahim, M.A.Bhadury, JAl-Sultan, K.S.unknownSystemsThis paper considers the problem of selecting the most economical target mean and variance for a continuous production process, In earlier studies, many authors considered the problem of finding an optimal target mean assuming that the variance is known. The problem with this assumption is the difficulty or impossibility of setting a target variance. Taguchi suggested a two-step procedure: first, set the target mean; then, find the smallest variance through redesign or experiment (resetting the level of factors). In this study, three new approaches are suggested for the economic selection of a target variance integrated with a target mean. In the first approach, an expected profit maximization criterion is used to obtain the target mean and variance simultaneously. The example used to illustrate this approach is a filling process where the quality characteristic is assumed to be normally distributed. The containers that are underfilled can be sold in a secondary market at a price of $P-L per can, those within specification can be sold at a price of $P-0 per can, and those over the upper specification limit can be sold at a price of $P-U per can. In the second approach, a minimum cost criterion based on the Taguchi loss function is used: first, the processes optimized for the variance; then, an optimal process mean is obtained. In the third approach, an economic model for the selection of the target variance is developed, using both customer and producer costs to minimize societal loss independent of the product quality characteristic distribution.TAYLOR FRANCIS LTDArticlePeerReviewedinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://eprints.kfupm.edu.sa/id/eprint/2392/1/joint_economic_selection_of_target_mean__rahim_isi_000175960700001.pdf Joint Economic Selection Of Target Mean And Variance. ENGINEERING OPTIMIZATION, 34. pp. 1-14. enhttps://eprints.kfupm.edu.sa/id/eprint/2392/2020info:eu-repo/semantics/openAccessoai::23922019-11-01T13:43:53Z
spellingShingle Joint Economic Selection Of Target Mean And Variance
Rahim, M.A.
Systems
status_str publishedVersion
title Joint Economic Selection Of Target Mean And Variance
title_full Joint Economic Selection Of Target Mean And Variance
title_fullStr Joint Economic Selection Of Target Mean And Variance
title_full_unstemmed Joint Economic Selection Of Target Mean And Variance
title_short Joint Economic Selection Of Target Mean And Variance
title_sort Joint Economic Selection Of Target Mean And Variance
topic Systems
url https://eprints.kfupm.edu.sa/id/eprint/2392/1/joint_economic_selection_of_target_mean__rahim_isi_000175960700001.pdf