Economic manufacturing quantity, optimum process mean, and economic specification limits setting under the rectifying inspection plan

Economic manufacturing quantity, process mean, and specification limits setting are three important methods for the inventory and quality control problems. In the imperfect production system, we usually consider the manufacturing quantity for reducing the inventory cost, determine the process level for reducing the production cost, and select the specification limits for screening the products. In this paper, we propose the above integrated model based on the application of rectifying inspection plan for obtaining maximum expected total profit of product. The asymmetric quadratic quality loss function is adopted for measuring the product quality. The sensitivity analyses of parameters are provided for illustration.