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Economic design of sampling plans with multi‐decision alternatives
Author(s) -
Bai Do Sun,
Hong Sung Hoon
Publication year - 1990
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/1520-6750(199012)37:6<905::aid-nav3220370609>3.0.co;2-w
Subject(s) - sampling (signal processing) , profit (economics) , acceptance sampling , sampling design , cost estimate , computer science , mathematics , econometrics , statistics , sample size determination , operations research , economics , microeconomics , population , demography , management , filter (signal processing) , sociology , computer vision
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.