The assumptions of period checking policy for On-Line Quality Control presented by Taguchi are examined and his loss function and formulae are evaluated by simulation. New iterative procedures are proposed under Taguchi's loss and improved loss functi...
The assumptions of period checking policy for On-Line Quality Control presented by Taguchi are examined and his loss function and formulae are evaluated by simulation. New iterative procedures are proposed under Taguchi's loss and improved loss functions, respectively. Computational experiments are conducted for various combinations of parameter values and their results are discussed. Sensitivity analysis for assumption of random walk model is also illustrated with an example.