Article ID: | iaor1991751 |
Country: | United States |
Volume: | 37 |
Issue: | 6 |
Start Page Number: | 905 |
End Page Number: | 918 |
Publication Date: | Dec 1990 |
Journal: | Naval Research Logistics |
Authors: | Bai Do Sun |
For situations where there are several markets with different profit-cost structures, economic attributes sampling plans are developed for determining the market to ship the lot to. Two sampling plans are considered; the fixed-size sampling plan with several levels of acceptance numbers, and the inverse sampling plan with several levels of sample sizes. Linear profit models are constructed which involve four profit/cost components; profit from a conforming item, inspection cost, replacement cost, and cost from an accepted nonconforming item. For fixed-size and inverse sampling plans, methods of finding optimal sampling plans are presented and examples with beta-binomial prior distributions are given.