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Optimal Economic Manufacturing Quantity and Process Target for Imperfect Systems

Recently, Chen [1] presented a modified economic manufacturing quantity (EMQ) model under imperfect product quality and perfect measurement system. The model determines the EMQ and the process target simultaneously. However, the extend model did not consider the problem under imperfect rework where measurement error exists. In this paper, the authors extend Chen [1] model for obtaining the optimum process mean and economic manufacturing quantity under imperfect rework where measurement error exists. The proposed model is illustrated via an example from the literature. Comparison of the results of the proposed model with Chen model is provided. In addition sensitivity analysis to assess the impact of the measurement errors has been conducted.