A note on the design of a two-sided, two-stage screening procedure with a prescribed outgoing quality

Design of a two-stage screening procedure is presented when both lower and upper specification limits are given on the performance variable. A variable correlated with the performance variable is first used for screening the items. The performance variable is then used to screen those items not accepted or rejected in the first stage. Optimal cutoff values on the correlated variable are determined so that the average outgoing quality exceeds a prespecified level and the expected total cost per item is minimized.