OPT UPPER LIMIT

The canning problem occurs when a process has a
minimum specification such that any product produced
below that minimum incurs a scrap/rework cost and
any product over the minimum incurs a give-away
cost. The objective of the canning problem is to
determine the target mean for production that
minimizes both of these costs. An upper screening
limit can also be determined; above which give-away
cost is so high that reworking the product maximizes
net profit. Continuous, finite range space
distributions are considered, specifically the
Uniform and Triangular distributions. For the
Uniform distribution, an optimum upper screening
limit and an optimum value for the mean fill level
is found using three net profit models. Each model
assumes a fixed selling price and a linear cost to
produce, but costs differ as follows: Model 1 uses fixed rework/scrap and
reprocessing costs Model 2 has linear rework/scrap and
reprocessing costs, and Model 3 has fixed rework/scrap and
reprocessing costs but adds an additional, higher
cost associated with a limited capacity of the
container.

Autorentext

Dr. Victoria Jordan is the Dir. of Quality Measurement and Engineering at M. D. Anderson Cancer Center. She received her Ph.D. from Auburn University in Industrial & Systems Engineering. Dr. Saeed Maghsoodloo is Professor, Industrial & Systems Engineering, Auburn University.

Klappentext

The "canning problem" occurs when a process has a minimum specification such that any product produced below that minimum incurs a scrap/rework cost and any product over the minimum incurs a "give-away" cost. The objective of the canning problem is to determine the target mean for production that minimizes both of these costs. An upper screening limit can also be determined; above which give-away cost is so high that reworking the product maximizes net profit. Continuous, finite range space distributions are considered, specifically the Uniform and Triangular distributions. For the Uniform distribution, an optimum upper screening limit and an optimum value for the mean fill level is found using three net profit models. Each model assumes a fixed selling price and a linear cost to produce, but costs differ as follows: Model 1 uses fixed rework/scrap and reprocessing costs Model 2 has linear rework/scrap and reprocessing costs, and Model 3 has fixed rework/scrap and reprocessing costs but adds an additional, higher cost associated with a limited capacity of the container.