Journal of Quality Engineering and Management

Abstract Purpose: 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.
Methodology: 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.
Findings: 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.