| Recently, there has been much interest among researchers in the economic manufacturing quantity and quality control, hence it is natural to integrate the determination of economic manufacturing quantity, process targeting and the approach used for maintain good quality product. The objective of the thesis was to develop a modified economic manufacturing quantity (EMQ) and process target model under imperfect product quality and inspection system. Three models are developed. The first model was developed under100% error-free inspection system. In the second model the inspection error free assumption is relaxed using cut-off point for inspection instead of the original specification limits. The results showed that the total profit in the first model is greater than the second model. The third model introduced Chen (2006) model where the inspection system is error prone. The results showed that the total cost increases. The utility of the modified economic manufacturing quantity models has been demonstrated using numerical examples. Sensitivity analysis has been performed to study the effect of inspection error and other parameters like production, inspection costs...etc. The sensitivity analysis has shown that as the correlation coefficient gets closer to one, the expected total cost decrease. The thesis concluded by suggesting a number of extensions to be considered in future research. |
