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The canning problem occurs when a process has a
minimum specification such that any product produced
below that minimum incurs a scrap/rework cost and
any product over the minimum incurs a give-away
cost. The objective of the canning problem is to
determine the target mean for production that
minimizes both of these costs. An upper screening
limit can also be determined; above which give-away
cost is so high that reworking the product maximizes
net profit. Continuous, finite range space
distributions are considered, specifically the
Uniform and Triangular distributions. For the
Uniform distribution, an optimum upper screening
limit and an optimum value for the mean fill level
is found using three net profit models. Each model
assumes a fixed selling price and a linear cost to
produce, but costs differ as follows: Model 1 uses fixed rework/scrap and
reprocessing costs Model 2 has linear rework/scrap and
reprocessing costs, and Model 3 has fixed rework/scrap and
reprocessing costs but adds an additional, higher
cost associated with a limited capacity of the
container.
minimum specification such that any product produced
below that minimum incurs a scrap/rework cost and
any product over the minimum incurs a give-away
cost. The objective of the canning problem is to
determine the target mean for production that
minimizes both of these costs. An upper screening
limit can also be determined; above which give-away
cost is so high that reworking the product maximizes
net profit. Continuous, finite range space
distributions are considered, specifically the
Uniform and Triangular distributions. For the
Uniform distribution, an optimum upper screening
limit and an optimum value for the mean fill level
is found using three net profit models. Each model
assumes a fixed selling price and a linear cost to
produce, but costs differ as follows: Model 1 uses fixed rework/scrap and
reprocessing costs Model 2 has linear rework/scrap and
reprocessing costs, and Model 3 has fixed rework/scrap and
reprocessing costs but adds an additional, higher
cost associated with a limited capacity of the
container.