345
Appendix 2: Product Upgrades Based on Minimum Expected Quality Loss
10
9
8
7
ality loss
6
n = 5
5
u
n = 4
Q
4
= 3
3
n
2
= 2
1
n
n = 1
0
0
1
2
3
4
5
6
7
8
9
10
Quality response
FIgure A2.5
Shapes of the general quality loss function.
TABLe A2.2
Values of Quality Loss According to the Value of n
Response of
Quality (x)
n = 1
n = 2
n = 3
n = 4
n = 5
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00
Quality loss
function
Baseline cost
n
−2 × C s × m
= −2 × 2 × 3
n
8.00
3.00
1.00
0.20
0.00
0.14
0.50
1.00
1.60
2.27
3.00
L n (x) =
−12
128.00
40.50
12.50
2.42
0.00
1.72
6.13
12.50
20.48
29.86
40.50
−2 × 2 × 3
n
−36
1352.00
12,800.00
330.75
2278.13
90.25
528.13
16.56
90.05
0.00
0.00
11.76
63.57
42.78
239.26
90.25
528.13
153.66
947.00
233.51
1520.47
330.75
2278.13
n
−n
+ 2 × x + 2 × 3
2n × x
−108
−324
117,128.00
14,595.20
2782.56
432.64
0.00
303.29
1191.33
2782.56
5315.79
9117.15
14,595.20
−972