An optimization model for quality improvement investment decisions considering learning and forgetting curve

Continous quality improvement is one of the keys to win the market competition. A product with high quality at competitive price will attract the customers to purchase. One way to maintain the quality improvement is by reducing product variance. In this paper, a quality improvement optimization model is developed to determine optimal investment allocation to certain component process by considering learning and forgetting curve. Maximum return on investment is the objective function of this model. Exponential learning investment function is used in this paper with taking into consideration the forgetting as the result of interruption. The model implementation will showed by numerical example and solved using Oracle Crystal Ball software.