The optimization of process target means in different markets

Calculating the optimal target mean for a process is recognized as an essential research area, with many proposed models in the literature. Previous studies have typically focused on a single market. The main difference in this research lies in the number of markets considered; unlike previous works, this study examines n different markets simultaneously.

This study aims to determine the optimal process quality mean for a limited number of markets based on the target values of quality characteristics in each market. We propose a model to calculate this optimal mean across n markets with different price/cost structures. A key innovation of this research is the incorporation of probability distributions that reflect the likelihood of the quality characteristic falling within specific quality ranges in each market.

The model considers the probability that the quality characteristic falls within each market's defined quality range. To analyze and solve the model, absorbing Markov chains are used. A numerical example is presented in which the model is applied to two markets, and the optimal target mean and corresponding optimal revenue are obtained.

Originality/Value:

 Based on the results from the numerical example, the optimal target mean and revenue were determined for the two markets. A sensitivity analysis was conducted to assess the influence of various model parameters on these parameters, demonstrating how changes in parameters impact the model's outcomes.