Author:
Goyal S.K.,Gunasekaran A.
Abstract
A study of the effect of the dynamic process quality control on the
economics of production and the Total System Cost (TSC) is dealt with. A
mathematical model is presented for estimating the Economic Investment
in Quality (EIQ) and the Economic Production Quantity (EPQ) in a
multi‐stage production‐inventory system. The basic criterion considered
for the determination of EIQ and EPQ is the minimisation of TSC. The TSC
consists of (1) set‐up cost, (2) in‐process inventory carrying cost;
this cost is a function of the processing time and the reset‐up time,
(3) finished product inventory carrying cost, (4) reset‐up cost, (5)
investment in quality control, and (6) scrappage cost. The feature of
this research is to consider the aspect of dynamic process quality
control, namely, “quality at the source”, by monitoring the
quality of the product as the process continues and stopping the process
if it goes out of control. A numerical example is given to illustrate
the model.
Subject
Management of Technology and Innovation,Strategy and Management,General Decision Sciences
Cited by
25 articles.
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