2002 an extension of banerjee and rahim’s model for economic

Upload: sreeshps

Post on 08-Aug-2018

212 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    1/11

    Stochastics and Statistics

    An extension of Banerjee and Rahims model for economic

    design of moving average control chart for a

    continuous flow process

    Yun-Shiow Chen *, Yit-Ming Yang

    Department of Industrial Engineering and Management, Yuan-Ze University, 135 Yuan-Tung Road, Nei-Li 32026, Taiwan, ROCReceived 14 June 2000; accepted 22 August 2001

    Abstract

    In this paper, we propose a model of a moving average control chart (MA control chart) with a Weibull failure

    mechanism from an economic viewpoint. When the process-failure mechanism follows a Weibull model or other models

    having increasing hazard rates, it is desirable to have the decreasing sampling interval with the age of the system. The

    MA control chart is used to monitor quality characteristics of raw material or products in a continuous process. A cost

    model utilizing a variable scheme instead of fixed sampling lengths in a continuous flow process is studied in this re-

    search. The variable sampling scheme is used to maintain a constant integrated hazard rate over each sampling interval.

    Optimal values for the design parameter, the moving subgroup size, the sampling interval, and the control limit co-efficient are determined by minimizing the loss-cost model. The performance of the loss cost with various Weibull

    parameters is studied. A sensitivity analysis shows that the design parameters and loss cost depend on the model pa-

    rameters and shift amounts.

    2002 Elsevier Science B.V. All rights reserved.

    Keywords: Economic design; Moving average control charts; Weibull shock model; Continuous flow process

    1. Introduction

    Duncan (1956) was the first researcher to designan xx-control chart from an economic viewpoint,

    and the methodology he used was optimal for

    solving the design parameters. The three design

    parameters, the subgroup size (n), the sampling

    interval h, and the control limit width (L), con-

    sidered in the model were selected to optimally

    minimize the average cost of a process. Duncan

    (1956) assumed that the process had only a singleassignable cause and that the occurrence time of

    an assignable cause was exponentially distributed.

    This assumption has been widely used in subse-

    quent work on the subject. Chiu and Wetherill

    (1974) developed a simple approximate procedure

    to optimize Duncans model, Taylor (1968) pre-

    sented an economic design model for Cusum

    charts, Saniga (1977) considered the joint eco-

    nomic design of XX and R charts, Duncan (1971)

    developed an economic design for the cases in

    European Journal of Operational Research 143 (2002) 600610

    www.elsevier.com/locate/dsw

    * Corresponding author. Tel.: +886-3-463-8800; fax: +886-3-

    463-8907.

    E-mail address: [email protected] (Y.-S. Chen).

    0377-2217/02/$ - see front matter 2002 Elsevier Science B.V. All rights reserved.

    PII: S0 3 7 7 -2 2 1 7 (0 1 )0 0 3 4 1 -1

    http://mail%20to:%[email protected]/http://mail%20to:%[email protected]/
  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    2/11

    which multiple assignable causes, and Ho and

    Case (1994) proposed the economically based

    EWMA control charts. Banerjee and Rahim

    (1987, 1988) studied a non-Markovian model, andthey applied a renewal theory to establish an

    economic model when the process failure mecha-

    nism follows a Weibull distribution. Banerjee and

    Rahim (1988) incorporated Lorenzen and Vances

    cost structure into a random sampling interval (cf.

    Lorenzen and Vance, 1986). Rahim and Banerjee

    (1993) extended Banerjee and Rahims model to

    allow the possibility of age-dependent replacement

    before failure when such a replacement yields

    economic benefits (cf. Banerjee and Rahim (1988)).

    Parkhideh and Case (1989) developed a six deci-

    sion variables in their economic model for XX-

    control chart. Ohta and Rahim (1997) proposed an

    alternative and simplified design methodology that

    reduces the number of six design variables to three.

    Rahim and Costa (2000) presented the joint eco-

    nomic design of XXR control charts when the oc-

    currence time of assignable causes follow Weibull

    distribution. Koo and Case (1990) first proposed

    an economic design of XX-control charts for use in

    monitoring a continuous flow process for the ex-

    ponential process failure mechanism. Chen and

    Yang (1999) extended Koo and Cases model tocases following a Weibull shock model (cf. Koo

    and Case, 1990). All of the above work is either

    focused on a piece part process for different kinds

    of control charts or on a continuous flow process

    for XX charts; little attention has been focused on

    the moving average control chart (MA control

    chart). The MA control chart is widely used in

    continuous flow processes; for example, a chemical

    plant may collect data, periodically, on the results

    of analysis made to determine the percentages of

    certain chemical constituents.In this paper, we adopt Banerjee and Rahims

    cost structure to develop an economic design of an

    MA control chart under a Weibull shock model in

    a continuous flow process.

    2. Definitions and assumptions

    The moving average can be determined from a

    time series of individual data values by finding the

    mean of the first n consecutive values, then drop-

    ping the oldest value and subsequently adding one

    sample value from a new sample to form the suc-

    cessive averages. The features of the model con-sidered in this article are as follows:

    (1) The time that the process remains in an in-

    control state follows a Weibull distribution. The

    p.d.f. is given by

    ft kttt1ektt ; t> 0; t=1; k > 0; 1where k is the scale parameter and t is the shape

    parameter.

    The Weibull hazard rate is derived as follows in

    Eq. (2):

    rt kttt

    1

    ; t> 0; t=1: 2(2) The process is monitored by drawing a

    random sample of size 1 at times, h1, h1 h2,h1 h2 h3; . . . ; let Wj

    Pji1 hi for j 1; 2; . . .

    W0 0, where j is the number of samples of size 1taken from the process. Fig. 1 depicts the sampling

    scheme in a continuous flow process for the MA

    chart. For non-uniform sampling, the optimal

    sampling interval hj is chosen such that the prob-

    ability of a process shift in any interval, given no

    shift until the start of the interval, is a constant

    for all intervals. According to this definition, theintegrated hazard rate over each sampling interval

    is a constant, that is,ZWj1Wj

    rtdtZh1

    0

    rtdt: 3

    The hj and Wj can easily be obtained as follows:

    hj bj1=t j 11=tch1; 4and

    Wj

    j1=t

    h1:

    5

    The hj j 1; 2; . . . is a function of h1 andpossesses the following two properties: (I) h1P

    h2 ; and (II) limm!1Pm

    j1 hj 1.(3) The time to sample and chart one item is

    negligible, and production ceases during the sear-

    ches and repair.

    (4) The process is normally distributed and

    characterized by an in-control state. An assignable

    cause occurring at random by a magnitude d re-

    sults in a shift in the mean from u0 to either u0 dr

    Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610 601

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    3/11

    or u0 dr, where u0, r, and d are, respectively, theprocess mean, the process standard deviation, and

    the shift parameter.

    Define Pj j 1; 2; . . . as the conditionalprobability that an assignable cause will occur

    during the sampling interval hj, given that the

    process is in an in-control state at time Wj

    1, that is,

    Pj R

    Wj

    Wj1ftdtR1

    Wj1ftdt 1 e

    kht1 : 6

    The Pjs are the same for j 1; 2; . . . For conve-nience, let Pj P0 for j 1; 2; . . .

    Define qj (j 1; 2; . . .) as the unconditionalprobability that an assignable cause occurs during

    the sampling interval hj, and

    qj Zwj

    wj1ftdt 1 P0j1P0 for j 1; 2; . . .

    73. Model components and cycle length

    A complete description of the cost structure

    model was presented by Lorenzen and Vance

    (1986). The time factors in our model involve the

    following terms:

    1. Average search time per false alarm, denoted as

    Z0.

    2. Average time to discover the assignable cause

    once an assignable cause detected, denoted as Z1.

    3. Average time to repair the assignable cause

    once the assignable cause discovered, denoted

    as Z2.

    Cost factors in the model are considered as fol-

    lows:

    1. Average quality cost per unit time when the

    process is in-control, denoted as D0.

    2. Average cost per false alarm when the process is

    in-control, denoted as Y.

    3. Average quality cost per unit time when the

    process is out of control, denoted as D1.

    4. Cost to locate and repair the assignable cause,

    denoted as w.

    5. The fixed sample cost and cost per unit sam-

    pled, denoted as a and b, respectively.

    A complete average cycle length is illustrated in

    Fig. 2. The objective is to find the optimal design

    parameters, including moving subgroup size (n),

    the first sampling interval h1, and control limitcoefficient (L), which can minimize the loss cost for

    the given cost and time parameters.

    Since the time for occurrence of an assignable

    cause follows a Weibull distribution, the average

    process in-control time (denoted as AVGICT) is

    Fig. 1. Sampling scheme and plotting of an MA control chart for a continuous flow process.

    602 Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    4/11

    AVGICT X1j0

    ZWj1Wj

    tftdt

    1k

    1=tC 1

    1

    t

    ; 8

    where Cy is the gamma function and yP 1.Define sj (j 1; 2; . . .) as the expected duration

    of the in-control period within the sampling in-terval hj, given that the shock occurred during

    sampling interval, that is,

    sj RWj

    Wj1t Wj1ftdt

    qj: 9

    Thus, the expected in-control time during a sam-

    pling interval in which the transition from an in-

    control state to an out-of-control state occurred is

    obtained using Eq. (10) as follows:

    s X1j1

    sjqj

    1k

    1=tC 1

    1

    t

    h1P01 P0A1 P0;

    10where Ax P1l0 l 11=txl, jxj < 1.

    When the process is out of control, the process

    mean will shift to u0 dr. Suppose that the shiftoccurs in the (j 1)th sampling interval, and let

    the mean of this moving subgroup be u. Let Pjidenote the probability that the process mean is

    shifted in the sampling interval hj1 and that theassignable cause is detected at the subsequent ith

    moving subgroup. Then, j i g is the numberof samples before the assignable cause is detected.

    Thus, Qji 1 Pji will be the probability that theassignable cause will not be detected in the fol-

    lowing moving subgroups. Three different situa-tions for u and Pji, can be obtained as follows:

    u u0 idg r if g< n;u0 idn r if gP n and i < n;u0 dr if gP n and iP n;

    8>: 11

    and

    Pji

    1 U L idffiffig

    p

    U L idffiffig

    p

    if g< n;

    1

    U L

    idffiffinp U L

    idffiffinp if gP n and i < n;

    1 UL d ffiffiffinp UL d ffiffiffinp if gP n and iP n;

    8>>>>>>>>>>>>>>>>>>>:

    12

    where UX is the CDF of the standard normaldistribution and L is the control limit. However,

    when gP n and iP n in Eq. (12), Pji is independent

    of j or i, let Pji P and Qji Q 1 P.From the three situations mentioned in Eq.

    (12), the average time from a shift occurring in the

    Fig. 2. A complete average cycle length.

    Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610 603

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    5/11

    (j 1)th sampling interval to the assignable causedetected in a later subgroup is derived and denoted

    as Ejt. Ejt consists of two parts, the averagetimes for the assignable cause to be detected in thesubsequent ith sample for i < n (denoted as Ptj1)and for iP n (denoted as Pt

    j

    2), i.e., Ejt Ptj1 Ptj2.Thus,

    Ptj

    1 Wj1 WjPj1

    Xn1i2

    Wij WjPjiYi1l1

    Qjl

    !

    h1 jh

    11=t j1=tiPj1

    h1 Xn1i2

    ih j1=t j1=tiPji Yi1l1

    Qjl !

    ;

    13

    Ptj2

    X1in

    Wij Wj Yn1

    l1Qjl

    !QinP

    h1Yn1l1

    Qjl

    !An

    j;Q j1=t 11 Q

    ;

    14

    where Ak;x P1m0 m k1=txm for jxj < 1.Let Et be the expected time from an occur-

    rence of a shift in the subgroup to the detection of

    the assignable cause, and let it be formulated as

    follows:

    Et X1j0

    Ejtqj1

    X1

    j0Ptj1 Ptj21 P0jP0: 15

    Combining Eqs. (10), (13)(15), we obtain the

    expected time to detect the assignable cause after

    the process shift, denoted as AVGOOCT. Thus,

    AVGOOCT Et s: 16The expected number of false alarms (ENF)

    depends on Type I error a and the number ofsampled moving subgroups before an assignable

    cause occurred. The ENF can be obtained as fol-

    lows:

    ENF aX1j1

    jqj

    1

    ! a 1 P

    0

    P0

    ; 17

    where a 21 UL.The average time to search false alarms is

    Z0ENF. If we let ATENF Z0ENF, then the ex-pected length of a cycle, ET, can be obtainedfrom Eqs. (9)(17). The result is as follows:

    ET AVGICT AVGOOCT Z1 Z2 ATENF

    Et h1P01 P0A1 P0

    Z1

    Z2

    Z0a

    1 P0

    P0 :

    18

    The expected total cost incurred during a cycle

    consists of the following cost components:

    1. The expected cost to search false alarms is C1,

    and C1 YENF.2. The expected quality cost for in-control process

    is C2, and C2 D0AVGICT.3. The expected quality cost for out-of-control

    process is C3, and C3 D1AVGOOCT.4. The cost to locate and repair the assignable

    cause is C4, and C4 w.5. The expected sampling cost is C5, and C5 a br1 r2, where r1 is the number ofsampled units before an assignable cause oc-

    curs, r2 is the number of sampled units before

    the assignable cause is detected after a cause

    occurs. Thus, r1 and r2 are derived as follows:

    r1 X1j1

    jqj 1P0

    19

    and

    r2 X1j0

    Xn1i2

    i"

    1PjiYi1l1

    Qjl

    !

    Yn1l1

    Qjl

    !n

    1 Q

    P

    #1 P0jP0:

    20Combining the cost components mentioned

    above, we obtain the expected total cost, EC, asfollows:

    604 Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    6/11

    EC C1 C2 C3 C4 C5

    aY

    1 P0

    P0

    D1X1j0

    Ptj1"

    Ptj21 P0jP0#

    D0 D1s D0h1P01 P0A1 P0

    a b r2

    1P0

    w: 21

    The optimum values for design parameters n, h1and L can be determined by minimizing the loss

    cost function EA, that is, EA EC=ET.

    4. Determination of optimal design parameters

    Basing our classification on the characteristics

    of the variables or parameters in the expected loss-

    cost model, the parameters can be classified into

    five categories. There are cost parameters Y;D0;a; b;D1;w; time parameters Z0;Z1;Z2; shift para-meter d; Weibull distribution parameters k; t and

    Table 1The effect on the optimal design as t changes

    Optimal design

    t k n h1 L Loss cost

    1 0.02 2 0.76 2.51 410.392

    1.5 0.002425 2 2.96 2.65 378.730

    1.8 0.0007078 2 4.99 2.65 375.228

    2 0.000314 2 6.46 2.65 372.730

    3 0.0000057 2 13.71 2.65 359.989

    Note: The mean duration of time to failure for each pair k; t is same.

    Table 2

    The effect on the optimal design as k changes

    Optimal design

    k t n h1 L Loss cost

    0.00001 2.859 2 12.74 2.65 351.750

    0.0001 2.284 2 8.57 2.65 369.141

    0.001 1.716 2 4.40 2.65 376.347

    0.015 1.067 2 0.81 2.65 382.222

    Note: The mean duration of time to failure for each pair k; t is same.

    Table 3

    The effect on the optimal design as either k (or t) changes while t (or k) is fixed

    Optimal design

    k t Mean n h1 L Loss cost

    0.0001 2 88.62 2 9.8 2.66 336.257

    0.001 2 28.03 2 4.24 2.63 416.556

    0.015 2 7.24 2 1.60 2.59 524.906

    0.001 1.5 90.33 2 4.34 2.66 339.338

    0.001 1.8 41.29 2 4.36 2.65 389.346

    0.001 3 8.93 2 3.41 2.60 482.747

    Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610 605

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    7/11

    Table 4

    The sensitivity results of changing one parameter from the base as t 3, k 0:001Quantity n h1 L Loss cost

    d1 5 3.05 2.49 609.8571.5 3 3.23 2.57 532.597

    1.8 3 3.25 2.70 502.427

    2.2 2 3.42 2.67 466.810

    2.5 2 3.45 2.77 448.753

    3 2 3.51 2.87 428.870

    Z0 0.625 2 3.39 2.66 487.813

    0.9375 2 3.40 2.63 485.369

    1.125 2 3.40 2.61 483.819

    1.375 2 3.41 2.58 481.642

    1.5625 2 3.42 2.56 479.915

    1.875 2 3.43 2.52 476.835

    Z1

    Z2 1.625 2 3.43 2.58 552.136

    2.4375 2 3.42 2.59 515.126

    2.925 2 3.41 2.59 495.199

    3.575 2 3.40 2.60 470.090

    4.0625 2 3.40 2.60 454.185

    4.875 2 3.39 2.61 428.806

    Y 1000 2 3.53 2.17 454.623

    1500 2 3.45 2.45 472.036

    1800 2 3.42 2.55 478.909

    2200 2 3.40 2.64 486.160

    2500 2 3.38 2.69 490.679

    3000 2 3.36 2.76 497.058

    w 500 2 3.40 2.61 444.046

    750 2 3.40 2.60 463.399950 2 3.41 2.60 478.878

    1100 2 3.41 2.59 490.484

    1250 2 3.41 2.59 502.089

    1500 2 3.42 2.58 521.425

    D0 105 2 3.39 2.62 410.154

    157.5 2 3.40 2.61 446.460

    189 2 3.40 2.60 468.234

    231 2 3.41 2.59 497.256

    262.5 2 3.42 2.59 519.014

    315 2 3.43 2.58 555.260

    D1 2000 2 3.96 2.60 399.862

    3000 2 3.62 2.60 445.088

    3600 2 3.48 2.60 468.363

    4400 2 3.34 2.59 496.384

    5000 2 3.26 2.59 515.659

    6000 2 3.14 2.59 545.226

    a b 20 3 2.81 3.02 428.95630 2 3.19 2.70 459.629

    36 2 3.33 2.64 474.021

    44 2 3.48 2.56 490.906

    50 2 3.59 2.51 502.256

    60 2 3.74 2.44 519.268

    Note: Base case: d 2, Z0 1:25 h, Z1 Z2 3:25 h, Y $2000, w $1000, D1 $4000, a b $40, D0 $210.

    606 Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    8/11

    design parameters n; h1;L. Two numerical exam-ples are used to verify the capability of the model.

    We modify Rahims BASIC computer program

    to meet our research needs and solve the optimaldesign parameters to reach the minimum of the

    EA (cf. Rahim, 1993).

    Example 1. The cost, time, shift, Weibull distri-

    bution parameters are set-up as follows: Y $2000, w $1000, D1 $4000, D0 $210, a $20,b $20, Z0 1:25 h, Z1 1:25 h, Z2 2 h, k 0:02, t 1, and d 2. (Note: h represents hours.)The optimal economic design parameters solved

    from the program are n 2, h1 0:59 h andL

    2:65, and the minimal loss cost is $383:011.

    Example 2. Reset the parameters in Example 1 as

    follows: Y $500, w $1100, D1 $950, D0 $50, a $20, b $20, Z0 0:25 h, Z1 Z2 1:0h, k 0:002, t 3 and d 2. The optimal designparameters are n 2, h1 4:13 h, L 2:08 andthe minimal loss cost is $297:972.

    To study the effect on the design parameters

    and loss cost of the various combinations of

    Weibull parameters, we let the mean time to failure

    be a constant 50 and the cost, time, and shift pa-rameters be the same as in Example 1. Numerical

    results for the parameters n; h1;L and the losscost under different pairs of k; t are shown inTables 1 and 2. Table 1 shows that an increasing t

    results in an increasing sampling interval h1, the

    decreasing of the loss cost, and no significant

    change in moving subgroup size n. The shortest

    sampling interval and largest loss cost occur when

    the failure time follows an exponential distribu-

    tion, i.e., t 1. Table 2 reveals that as k increases,the h1 decreases, the loss cost increases and thereis little effect on L.

    The numerical results of using the same set-up

    of model parameters as in Example 1, except that

    different pairs of k; t are used, are shown inTable 3. Table 3 indicates that the loss cost in-

    creases when one of the k; t is fixed and the otherincreases. Also, the higher the value of mean time

    to failure, the smaller the value of loss cost.

    However, we cannot conclude that the loss cost is

    a decreasing function of mean time to failure. An

    increasing k (fixed t), results in a decreasing h1 and

    L. There is a significant effect on n, and no extreme

    change in L when t increases and k is fixed.

    5. Sensitivity analysis

    In this section, we discuss the robustness of the

    model when the time, cost, and shift parameters

    vary. If we use the parameter values given in Ex-

    ample 1 and t 3, k 0:001 as our base case,each of the following parameters d; Z0; Z1 Z2; Y, w; D0; D1, and a b are perturbed by10%, 25%, and 50% from the base case. Theoptimal values of n, h1, L and the loss cost for all

    48 cases are presented in Table 4. Several points

    can be observed from an analysis of Table 4.

    1. An increasing value ofd leads to a decreasing n

    and loss cost, but an increasing h1 and L.

    2. Z0;Z1 Z2 and w have little effect on n, h1 andL; however, the parameters Z1 Z2 and w havemore impact on the loss cost.

    3. Y has a significant effect on h1 and L, but a less

    significant effect on the loss cost.

    4. When D1 is small, h1 is large and the loss cost is

    small.5. When D0 varies, there is no significant effect on

    n, h1 and L, but a significant effect on the loss

    cost.

    6. A large sample cost a b leads to a smallermoving subgroup size n, but has a significant ef-

    fect on the h1, L, and loss cost.

    6. Conclusion

    This paper is a presentation of a detailed devel-opment of an economically based MA control chart

    where the process-failure mechanism follows a

    Weibull distribution. The loss-cost model is well

    established and formulated, and the optimal design

    parameters for the cost model are solved using a

    BASIC program. The numerical and sensitivity

    analyses are performed to reveal how the loss cost,

    the design parameters, and the model parameters

    relate. In this paper, we successfully extend the

    economically based MA control chart design from a

    Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610 607

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    9/11

    uniform sampling scheme to a non-uniform sam-

    pling scheme for use in a continuous flow process.

    Acknowledgements

    Part of this work was supported by the Na-

    tional Science Council of Taiwan under grant No.

    NSC89-2213-E-155-066.

    Appendix A. Proof ofET and EC

    The proposed procedure considers the system at

    the end of the first sampling moving subgroup.

    Systems of equations can be formulated by taking

    into account all possible states of the system, the

    residual times and cost in the cycle, and associated

    probabilities. Let T and C, respectively, be the

    residual time and cost in the first sampling moving

    subgroup interval h1 whether an assignable causehas or has not occurred. Let T1 and C1 be the re-

    sidual time and cost in the second moving sub-

    group interval h2 whether an assignable causehas or has not occurred, given that no assignable

    cause has occurred at the first moving subgroup

    interval. In a similar fashion, we may define T2;T3; . . . and C2;C3; . . .

    Let Tj and Cj (j 0; 1; 2; . . .) be the residualtimes and cost in the cycle beyond Wj, given that

    the process is in the in-control state at time Wj.

    Clearly, T0 T and C0 C.The proofs of ET and EC are illustrated in

    the following lemmas.

    Lemma A.1. The following statements are true:

    ET P0Pt0

    1 Pt0

    2 Z1 Z2 1 P0h1 aZ0 ET1; A:1

    ET1 P0Pt11 Pt12 Z1 Z2 1 P0h2 aZ0 ET2 A:2

    for j 2; 3; . . . ; and

    ETj1 P0Ptj11 Ptj12 Z1 Z2 1 P0hj aZ0 ETj: A:3

    From (A.1)(A.3), we can obtain

    ET P0Pt01 Pt02 Z1 Z2

    1

    P0

    fh

    1 aZ

    0 P0

    Pt1

    1 Pt1

    2 Z1 Z2 1 P0h2 aZ0 ET2g P0Pt01 Pt02 1 P0Pt11 Pt12

    1 P02Pt21 Pt22 P0Z1 Z21 1 P0 1 P02 aZ01 P0 1 P02 1 P0h1 1 P02h2 1 P03h3

    X1

    j0 Ptj

    1 Ptj

    21 P0j

    P0 Z1 Z2

    aZ0 1 P0

    P0 1 P0P0h1A1 P0;

    A:4where Pt

    j

    1 andPtj

    2 are the same as Eqs. (13) and (14).

    Lemma A.2. The following statements are true:

    EC a b

    P0

    a( b X

    n1

    i2 i" 1P0i Y

    i1

    l1Q0l !

    Yi1l1

    Q0l

    !n

    1 QP

    #

    D0 D1s1 D1Pt01 Pt02 w)

    1 P0D0h1 aY EC1 A:5for j 2; 3; . . . ; and

    E

    Cj

    1

    a

    b

    P0

    a( b X

    n1

    i2 i" 1

    Pj1iYi1l1

    Qj1l

    !

    Yi1l1

    Qj1l

    !

    n

    1 QP

    # D0 D1sj

    D1Ptj11 Ptj12 w)

    1 P0D0hj aY ECj; A:6

    608 Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    10/11

    From (A.5) and (A.6), we can obtain

    E

    C

    a

    b

    P0 a

    ( b

    Xn1i2

    i"

    1P0iYi1l1

    Q0l

    !

    Yn1l1

    Q0l

    !n

    1 Q

    P

    #

    D0 D1s1 D1Pt01 Pt02 w)

    1

    P0

    D0h1( aY a b

    P0 a(

    bXn1i2

    i"

    1P1iYi1l1

    Q1l

    !

    Yn1l1

    Q1l

    !n

    1 Q

    P

    #

    D0 D1s2 D1Pt11 Pt12 w)

    1 P0D0h2 aY EC2) a b1 1 P0 1 P02

    a bP0Xn1i2

    i(

    1P0iYi1l1

    Q0l

    !

    Yn1l1

    Q0l

    !n

    1 Q

    P

    1

    P0

    Xn1

    i2 i"

    1

    P1i Y

    i1

    l1Q1l !

    Yn1l1

    Q1l

    !n

    1 Q

    P

    #

    )

    D0 D1P0s1 1 P0s2

    1 P02s3

    wP01 1 P0 1 P02

    aY1 P01 1 P0 1 P02 D1P0Pt01 Pt02 1 P0Pt11 Pt12 D0h11 P0 h21 P02

    a b 1P0

    a bX1j0

    Xn1i2

    i"

    1PjiYi1l1

    Qjl

    !

    Yn1l1

    Qjl

    !n

    1 Q

    P

    #1 P0jP0

    D0

    D1

    s

    w

    aY

    1 P0P

    0 D1

    X1j0

    Ptj1 Ptj21 P0jP0

    D01 P0P0h1A1 P0: A:7

    References

    Banerjee, P.K., Rahim, M.A., 1987. The economic design of

    control charts: A renewal theory approach. Engineering

    Optimization 12, 6673.

    Banerjee, P.K., Rahim, M.A., 1988. Economic design of xx

    control charts under Weibull shock models. Technometrics

    30, 407414.

    Chen, Y.S., Yang, Y.M., 1999. Economic design of xx control

    charts for continuous flow process with Weibull in-control

    time. In: The 13th Asia Quality Symposium 99 Osaka, pp.

    1720.

    Chiu, W.K., Wetherill, G.B., 1974. A simplified scheme for the

    economic design ofxx-charts. Journal of Quality Technology

    6, 6369.

    Duncan, A.J., 1956. The economic design of xx charts used to

    maintain current control of a process. Journal of the

    American Statistical Association 51, 228242.

    Duncan, A.J., 1971. The economic design of xx-chartswhen there is a multiplicity of assignable causes.

    Journal of the American Statistical Association 66,

    107121.

    Ho, C., Case, K.E., 1994. The economically-based EWMA

    control chart. International Journal of Production Research

    32, 21792186.

    Koo, T.Y., Case, K.E., 1990. Economic design of x-bar control

    charts for use in monitoring continuous flow processes.

    International Journal of Production Research 28, 2001

    2011.

    Lorenzen, T.J., Vance, L.C., 1986. The economic design of

    control charts: A unified approach. Technometrics 28, 310.

    Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610 609

  • 8/22/2019 2002 An extension of Banerjee and Rahims model for economic

    11/11

    Ohta, H., Rahim, M.A., 1997. A dynamic economic model for

    an xx-control chart design. IIE Transactions 29 (6), 481486.

    Parkhideh, B., Case, K.E., 1989. The economic design of a

    dynamic xx-control chart. IIE Transactions 21, 313323.

    Rahim, M.A., 1993. Economic design of xx control chartsassuming Weibull in-control times. Journal of Quality

    Technology 25, 296305.

    Rahim, M.A., Banerjee, P.K., 1993. A generalized model for

    the economic design of xx-control charts for production

    system with increasing failure rate and early replacement.

    Naval Research Logistics 40 (6), 787809.

    Rahim, M.A., Costa, A.F.B., 2000. Joint economic design of xx

    and R charts under Weibull shock models. International

    Journal of Production Research 29 (3), 845873.Saniga, E.M., 1977. Joint economically optimal design of xx and

    R control charts. Management Science 24, 420431.

    Taylor, H.M., 1968. The economic design of cumulative sum

    control charts. Technometrics 10, 479488.

    610 Y.-S. Chen, Y.-M. Yang / European Journal of Operational Research 143 (2002) 600610