This paper provides mathematical models to determine optimal tolerances for which the combined manufacturing costs, quality loss, and scrap/rework costs are minimized. The models include cases such as a single component, as well as multiple components for a product. The models also consider the constraints such as design functionality restrictions, product quality requirements, and process capability limits. The models are mainly developed for application in both engineering management and engineering design.
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Angus Jeang (1996) studied this question.
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