An optimization model for concurrent selection of tolerances and suppliers

The quality loss function incorporates the quality cost for design of tolerances, however, it does not consider the manufacturing cost and design constraints. In this paper, a stochastic integer programming (SIP) approach is presented for simultaneous selection of tolerances and suppliers based on the quality loss function and process capability indices. A direct link between the minimum manufacturing cost and the required level of manufacturing yield is established through the process capability index. The optimization model is illustrated with examples for concurrent selection of mechanical and electrical tolerances and the suppliers.