Abstract
An economical quality control procedure is given when measurement error is present. The functional quality characteristic is observed indirectly and assumed to follow an integrated moving average of order one process. It is supposed to be independent of a white noise representing the measurement error. The limiting long-run average cost rate is evaluated. The optimum value of the control parameters, the inspection interval, and the control limit are obtained by minimizing the approximation of the loss function or the long-run cost rate.
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