Gradient-Based Simulation Optimization for Economic Design of Control Charts
- Resource Type
- Conference
- Authors
- Zhang, Gongbo; Peng, Yijie; Yang, Shuhuai
- Source
- 2021 IEEE 17th International Conference on Automation Science and Engineering (CASE) Automation Science and Engineering (CASE), 2021 IEEE 17th International Conference on. :1979-1984 Aug, 2021
- Subject
- Robotics and Control Systems
Costs
Computer aided software engineering
Automation
Sensitivity analysis
Conferences
Control charts
Numerical models
simulation
control charts
economic design
generalized likelihood ratio method
- Language
- ISSN
- 2161-8089
We propose a gradient-based simulation optimization approach for economic design of control charts. A generalized likelihood ratio method is applied to estimate the gradient. Two stochastic approximation algorithms with increasing sample size in iterations and randomized sample size are developed to determine an optimal upper control limit for exponentially weighted moving average control chart. Numerical results show that the proposed method is an effective approach for economic design of control charts.