The assumptions of the on-line process-control methods presented by Taguchi, Elsayed, and Hsiang (1989) are examined. Taguchi's method for obtaining control strategies is evaluated for the random-walk case. A method for approximating optimal control strategies is presented and compared with results obtained using Taguchi's method, with a new modification of Taguchi's method, and with simulation results.
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Adams et al. (1989) studied this question.
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