Minimization of inspection cost in an inspection system considering the effect of lot formation on AOQ

Minimization of inspection cost in an inspection system considering the effect of lot formation on AOQ

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Article ID: iaor20106439
Volume: 16
Issue: 1
Start Page Number: 51
End Page Number: 60
Publication Date: Jan 2010
Journal: International Journal of Management Science
Authors:
Abstract:

In this paper, we readdress the optimization problem for minimizing the inspection cost in a back-light unit inspection system, which forms a network including a K-stage inspection system, a source inspection shop, and a re-inspection shop. In order to formulate our objective function when the system is in a steady state, assuming that the number of nonconforming items in a lot follows a binomial distribution when a lot is formed for inspection, we make a steady-state network flow analysis between shops, and derive the steady-state amount of flows between nodes and the steady-state fraction defectives by solving a nonlinear balance equation. Finally we provide some fundamental properties and an enumeration method for determining an optimal value of K which minimizes our objective function. In addition, we compare our results numerically with previous ones.

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