This thesis is concerned with the problem of selecting the most profitable target values (initial setting value, resetting time, and upper limit) for a continuous production process in which there is a linear shift in the mean value of quality characteristic. Three cases are considered :
i) There is only a lower specification limit. A product below the lower specification limit is reworked.
ii) There are a lower specification limit and an upper limit (which is a decision variable). A product below the lower specification limit or above the upper limit is reworked.
iii) There are both upper and lower specification limits. A product below the lower specification limit is reworked and a product above the upper specification limit is sold at a discount.
For the three cases, expected profit models are constructed which involve rework cost, scrap cost, give-away cost, and resetting cost. Methods of finding the optimal target values are presented and tables are provided. Numerical examples are given and sensitivity analyses are performed.
