Traditional economic manufacturing quantity (EMQ) model addressed that the perfect production for product. However, there possibly exists the defective product in the manufacturing process. Hence, it is necessary to include the quality cost in the EMQ model. In this paper, we propose a modified EMQ model with quality loss and inventory cost. By solving the modified EMQ model, we can obtain the optimum production run length and process mean by considering the minimum expected total cost. Taguchi’s symmetric quadratic quality loss function will be adopted for evaluating the product quality.
Keywords: Economic Manufacturing Quantity, Process Mean, Taguchi’s Symmetric Quadratic Quality Loss Function
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