Reducing cost and abandoned E-components in incomplete identification

After some types of electronic components are produced, each component is either good or defective, but this is not known before testing. A group of these components can be examined together in one incomplete identification test, and the testing outcome will be either ‘success’ or ‘failure’. The failure outcome happens if and only if there exists one or more defective units among the test group of components. Usually the whole group with the failure outcome is abandoned because the testing cost is much higher than the component cost per unit. On the other hand, electronic garbage has resulted serious environmental pollution. In this study, we show that the manufacturer can achieve lower expected costs and less waste through ordering less components and retesting part of the failed group. As a result, electronic garbage is reduced and so is environmental pollution. The corresponding optimal policy is attained by solving a set of simultaneous equations of a dynamic programming. The component supplier can also improve profit by the retesting strategy.