On the present worth of multivariate quality loss

摘要: Abstract Quality loss function has been introduced, by Taguchi, to be a quality performance measure for products since the 1980s. In this paper, we extend work of Teran et al. [The Engineering Economist 42 (1) (1996) 39–52] and incorporate concept time value money into multivariate function. First, model present worth expected (PWML) is established its solution procedure developed. Then, an example provided illustrate how can applied. Some sensitivity analyses are conducted study effects planning horizon, customer discount rate coefficients parameter drift on optimal means at production associated loss. From results analysis, longer horizon product is, farther should set relative targets time. Also, as increases, mean closer target