Choosing a lower specification limit for an exponential process with 'the larger the better' tolerance: A simple, exact solution

Chen (1999) proposed an economic design, using Taguchi's quality loss function, for choosing a producer's lower specification limit eta for a product with a quality characteristic that has an exponential distribution with mean θ and 'the larger the better' tolerance. Chen (1999) developed an approximate solution that is applicable when 0.5 r m /θ r 0.7 and that requires numerical minimization. We derive a simple, exact solution that is applicable for all values of m /θ and does not require numerical minimization.