Distribution-Free Control Charts Based on Multiple Runs: Advances and Applications in Supply Chain Management

Abstract

In this article, we improve the behavior of nonparametric Shewhart-type control charts, which employ order statistics and multiple runs-type rules. The proposed class of monitoring schemes includes some existing control charts. In addition, new distribution-free monitoring schemes that pertain to the class, are set up and examined extensively. Explicit expressions for determining the variability and the mean of the run length distribution for the enhanced control charts are additionally delivered. As an example, a real-life managerial application is considered, where the proposed framework is implemented in order to enhance the provided services of a company under a supply chain management environment. Based on numerical comparisons, we draw the conclusion that the new charts outperform their competitors in identifying potential changes in the fundamental distribution in almost all cases considered.