Article ID: | iaor1998561 |
Country: | Netherlands |
Volume: | 79 |
Issue: | 2 |
Start Page Number: | 311 |
End Page Number: | 324 |
Publication Date: | Dec 1994 |
Journal: | European Journal of Operational Research |
Authors: | Chung Kun-Jen, Chen Shieh-Liang |
In a complete inspection plan, every finished item is subject to variable inspection. Items are acceptable if they meet specifications. Otherwise, the items are sold as scrap at a reduced price. This paper presents an economic model to determine the most profitable target value for a production process with consideration of inspection error. As expected, the model without error consideration is the special case of our model when inspection precision level approaches infinity.