Recently, Ohta et al. [Quality and Reliability Engineering International 17: 439-446, 2001] have studied the economic design of CCC(Cumulative Count of Conforming)-r charts for high-yield processes assuming a fixed hazard rate. Generally, however, the hazard rate is varying over time. With the...

Abstract Recently, Ohta et al. [Quality and Reliability Engineering International 17: 439-446, 2001] have studied the economic design of CCC (Cumulative Count of Conforming)- r charts for high-yield processes assuming a fixed hazard rate. Generally, however, the hazard rate is varying over time....

When the spot price and production risk are jointly normally distributed, the mean-variance approach has little theoretical justification. The authors use Taylor approximations instead and show the three results. One, farmers hedge less than expected production when the futures price is less...