Authors: H. D. Nguyen, K. P. Tran, K. D. Tran

Link: https://doi.org/10.1016/j.ejor.2020.11.042

Abstract:

Investigating the effect of measurement errors on the control chart monitoring the ratio of two normal random variables is an important task to facilitate the use of this kind of control chart in practice. Moreover, a deep insight into the problem can help practitioners to find a way to reduce unexpected impacts of measurement errors on the chart performance. This paper provides a study on the performance of the exponentially weighted moving average control chart monitoring the ratio in the presence of measurement errors. We extend the linear covariate error model applied in previous studies to a more general situation, which makes the study more realistic. The numerical results show that although the precision error and the accuracy error have negative influences on the proposed chart performance when these errors are not large these influences are not significant.

Highlights:

• The linear covariate error model for the sample ratio is developed.
• The Exponentially Weighted Moving Average charts for the ratio are studied.
• A useful conclusion for practitioners is drawn.
• An application of this study is presented

Figure: The EWMA-RZ− control chart in the presence of measurement errors for the battery recycling industry dataset

Citation: H. D. Nguyen, K. P. Tran, and K. D. Tran. "The effect of measurement errors on the performance of the Exponentially Weighted Moving Average control charts for the Ratio of Two Normally Distributed Variables.", European Journal of Operational Research (2020).

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