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Inventory Systems with Quality Improvement

This paper considers the problem of the linkage between quality improvement and production planning through a process control-oriented quality control mode (PCOQCM), in which quality improvement is regarded as activities related to actions against a process in order to make it in-control through process control. The PCOQCM is developed on the suggestion that quality should be built in processes. In this paper, the application of the PCOQCM to a production planning is considered. Optimal production policy under imperfect production environment, in which quality of products is not perfect and some defective products are produced, is determined in the production-inventory system with production constraint by using a linear tracking control theory. Numerical examples are shown that the cost per item in this system is lower than that in the standard production-inventory system without consideration of imperfect production.