A Note on Minimizing the Total Loss for Two Quality Characteristics with One-sided Specification Limit

Author(s)

Chun-His Wang, Jan-Yee Kung, Kuei-I Lee, Win-Chin Lin, Chin-Chia Wu, Nae-Sheng Wang

Author affiliation

1 Department of Accounting, National Taichung Institute of Technology, Taichung, Taiwan
2 Department of Business Administration, Cheng Shiu University, Kaohsiung, Taiwan
3 Department of Hospitality Management, Tunghai University, Taichung, Taiwan
4 Department of Statistics, Feng Chia University, Taichung, Taiwan

Abstract

A single quality characteristic of a product is typically considered on the development of economic specification limits in the recent researches. However, from the view of the customers, products are often evaluated based on more than one quality characteristics. Due to the observation, this paper will not only develop an optimum process for two quality characteristics based on bivariate exponential distributions, but also provide a sensitivity analysis for the results.

Keywords

economic specification limits; two quality characteristics; optimum process