Quality & Quantity

, Volume 41, Issue 2, pp 291–301 | Cite as

LINEX Loss Functions with Applications to Determining the Optimum Process Parameters

  • Yen-chang Chang
  • Wen-liang Hung


In the classical Taguchi quality model, the symmetric quadratic loss function has been used to measure the loss of quality. However, there are a number of situations in which the symmetric quadratic loss may be inappropriate. In this paper, we proposed an asymmetric loss function, called linear exponential (LINEX) loss function, to determine optimum process parameters for the product quality. When the coefficient of LINEX loss function is small, it will be close to the quadratic loss. Moreover, the trade-off problem between quality and cost will be discussed.


LINEX loss function trade-off problem cost quality 


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Copyright information

© Springer 2007

Authors and Affiliations

  • Yen-chang Chang
    • 1
  • Wen-liang Hung
    • 2
  1. 1.Department of Business AdministrationVanung UniversityChungli CityR.O.C
  2. 2.Department of Applied MathematicsNational Hsinchu University of EducationHsin-ChuR.O.C

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