DocumentCode
1740970
Title
A real options design for quality control charts
Author
Nembhard, Harriet Black ; Shi, Leyuan ; Aktan, Mehmet
Author_Institution
Dept. of Ind. Eng., Wisconsin Univ., Madison, WI, USA
Volume
1
fYear
2000
fDate
2000
Firstpage
597
Abstract
We develop a financial model for a manufacturing process where quality can be affected by an assignable cause. We evaluate the options associated with applying a statistical process control chart using pentanomial lattice and Monte Carlo simulation methods. By connecting the aspects of market dynamics with the manufacturing operational aspects, we now have a way to help decision makers address the bottom-line profitability associated with the quality control decision
Keywords
Monte Carlo methods; quality control; statistical process control; Monte Carlo simulation; assignable cause; financial model; manufacturing process; market dynamics; profitability; quality control charts; quality control decision; real options design; statistical process control chart; Control charts; Cost accounting; Design for quality; Industrial engineering; Joining processes; Lattices; Manufacturing processes; Process control; Profitability; Quality control;
fLanguage
English
Publisher
ieee
Conference_Titel
Simulation Conference, 2000. Proceedings. Winter
Conference_Location
Orlando, FL
Print_ISBN
0-7803-6579-8
Type
conf
DOI
10.1109/WSC.2000.899768
Filename
899768
Link To Document