Abstract
Three types of warranty polities are considered: 1) a free-warranty policy for repairable products, 2) a free-warranty policy for non-repairable products, and 3) a rebate-warranty policy for non-repairable products. Under each warranty policy, a single-sample attribute plan with non-destructive testing is considered. A proposition is provided to determine an optimum sampling plan under each warranty policy, which minimizes the sum of the average warranty cost and average quality control cost within the assigned producer and consumer risks.
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