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政大典藏 > College of Commerce > Department of Business Administation > Periodical Articles > Item 140.119/73708

Please use this identifier to cite or link to this item: https://nccur.lib.nccu.edu.tw/handle/140.119/73708

Title:	Optimal process control policies under a time-varying cost structure
Authors:	Tang, Kwei;Gong, Linguo;Chang, Dong-Shang 唐揆
Contributors:	企管系
Keywords:	Process control;Inventory;Quality costs;Product perishability
Date:	2006
Issue Date:	2015-03-09 16:18:17 (UTC+8)
Abstract:	Quality experts have recognized two types of quality costs resulting from failure of control; namely, internal and external failure costs of control. Explicitly considering the difference between internal and external failure costs in designing statistical process control procedures is especially important in today’s business environment because (1) inventory holding time is strategically kept very short because of the just-in-time philosophy, and (2) product values decrease at a very fast rate over time because of advances in technology and keen competition. In this paper, we develop a process control model under a time-varying cost structure, based on internal and external failure costs. Using the model, we also study the process control policies when the value of the product may decrease over time. We consider two forms of product perishability. The first is an exponential product value drop, and the second is a fixed life product life.
Relation:	European Journal of Operational Research, 149(1), 197-210
Data Type:	article
DOI link:	http://dx.doi.org/10.1016/S0377-2217(02)00443-5
DOI:	10.1016/S0377-2217(02)00443-5
Appears in Collections:	[Department of Business Administation] Periodical Articles

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