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Opt Upper Limit
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The canning problem occurs when a process has a §minimum specification such that any product produced §below that minimum incurs a scrap/rework cost and §any product over the minimum incurs a give-away §cost. The objective of the canning problem is to §determine the target mean for production that §minimizes both of these costs. An upper screening §limit can also be determined; above which give-away §cost is so high that reworking the product maximizes §net profit. Continuous, finite range space §distributions are considered, specifically the §Uniform and Triangular distributions. For the §Uniform distribution, an optimum upper screening §limit and an optimum value for the mean fill level §is found using three net profit models. Each model §assumes a fixed selling price and a linear cost to §produce, but costs differ as follows: Model 1 uses fixed rework/scrap and §reprocessing costs Model 2 has linear rework/scrap and §reprocessing costs, and Model 3 has fixed rework/scrap and §reprocessing costs but adds an additional, higher §cost associated with a limited capacity of the §container.
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