A mixed inspection policy for csp-t and precise inspection under inspection errors and return cost

Abstract

This article deals with a mixed policy between precise inspection and CSP-T with inspection errors (Types I and II) and return cost. With respect to non-repairable and repairable products, the following decision variables are determined such that the unit net profit is maximal: (1) the optimal sampling plan for CSP-T and (2) the optimal proportions on which precise inspections should be taken for the non-inspected items, the non-defectives, and the defectives identified in the procedure of CSP-T. Overall, the analytical results indicate that depending on ten parameters (the process defective fraction, Type I error, Type II error, the selling price of an item, the unit formal repair cost, the unit informal repair cost, the unit return cost, the unit opportunity cost, the unit inspection cost, and the unit cost of precise inspection), both of non-repairable and repairable products have two main optimal inspection policies for CSP-T: “Do 100% inspection consecutively” and “Stop inspection after 100% inspection”; besides, for the non-inspected items, the non-defectives, and the defectives identified in the procedure of CSP-T, there are two main proportions on which precise inspection should be performed: 100% and 0%.