Optimal manufacturing target setting by considering process adjustment cost and quality loss

In this study, the author considers the optimal manufacturing target setting problem with process adjustment cost and product quality loss. Assume that the process adjustment cost is proportional to the square of process mean and reciprocal of variance. The asymmetric linear quality loss function is adopted for measuring the product quality. The uniform distribution of quality characteristic is addressed in the formulation of mathematical model. The optimal manufacturing target will be obtained by minimizing the expected total cost of product.