Taguchi’s Loss Function Approach to Economic Design of Rectifying Single Sampling Plan by Variable with Asymmetric Quality Cost

Abstract

The quadratic Taguchi (quality) loss function has been given wide attention in the application of statistical (Economic) process control, which in most cases is always aimed at obtaining optimal setting for a process. This article is an extension of Chung-Ho Chen (2005) and focuses on the use of Taguchi loss function with truncated normal probability density function in designing optimal inspection policy and economic specification limits for rectifying single sampling plan by variable with unequal quality costs