Economic Design of Short-Run CSP-1 Plan Under Linear Inspection Cost

Abstract

In general, the unit cost of inspection is assumed to be constant. However, it can be argued that the unit cost of inspection is seldom constant. In 1943, Dodge proposed the type I continuous sampling plan (CSP-1 plan) and indicated how to calculate its average outgoing quality (AOQ) and average fraction inspected (AFI). In this paper, we further propose the problem concerning the economic design of short-run CSP-1 plan under linear inspection cost. A solution procedure is developed to find the unique combination (i * , f * ) that will meet the average outgoing quality limit (AOQL) requirement, while also minimizing the total expected cost per unit produced for the short-run CSP-1 plan when the process average p ( AOQL) and production run length R are known. A numerical example is illustrated and the sensitivity analysis of parameters is provided.