Determination of Optimum Target Values for a Production Process Based on Two Surrogate Variables

In this paper, we consider the problem of determining the optimum target values of the process mean and screening limits for a production process under single screening procedure. Two surrogate variables are observed simultaneously in single screening procedure. It is assumed that two surrogate variables are correlated with the quality characteristic of interest. A model is constructed that involve selling price and production, inspection and penalty costs. A method for finding the optimum target values of the process mean and screening limits is presented when the quality characteristic of interest and surrogate variables are assumed to be jointly normally distributed. A numerical example is presented.

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