Towards Determining the Optimum Process Mean using an Exponential Distribution

Manufacturers are often faced with the problem of selecting the optimum process mean. Wen and Mergen (1999) used the unbalanced step loss function for measuring the cost of the non-conforming item and adopted a trade-off model for determining the optimum process mean. They assumed that the quality characteristic is normally distributed, the process variance constant and the process mean is unknown. This paper presents the modified Wen and Mergen model with a step loss function and piecewise function using an exponential distribution. The proposed model is a generalization of Wen and Mergens model. Keywords: step-loss function, piecewise linear loss function, exponential distributio