Optimal process mean setting with asymmetric quadratic quality loss and process adjustment cost based on exponential product characteristic

In this study, the author presents the economic selection of process mean with the quality loss and process adjustment cost. Assume that the quality characteristic is exponentially distributed with parameter (lambda). The product quality loss is measured by adopting the asymmetric quadratic quality loss function. The adjustment cost of process mean is assumed to be proportional to mu(2) and the adjustment cost of process variance is assumed to be proportional to 1/sigma(2). The objective is to obtain the optimal process mean under the minimization of the expected total cost of product including the process adjustment cost and product quality loss. The numerical example and sensitivity analysis of some parameters are provided for illustration.