Commit time decision for measuring demand side quality costs with limited distribution information
Consider a single machine processing multiproducts situation when only the mean and standard deviation of processing time for each product are available. The bounds of optimal commit delivery time range are obtained. A decision of the robust commit delivery time is suggested. An extension to the situation with information of orders in queue is also discussed. Numerical examples show that the suggested decision performs well. The expected value of additional information, which measures the maximum amount a decision maker is willing to pay for knowledge of true distribution information, is small, and that further demonstrates the worthiness of the suggested robust decision.
quality costs commit delivery time queuing theory decision analysis