Abstract
Abstract In a complete inspection plan, every incoming item is subject to variable inspection. If the inspection result indicates that an item fails to meet predetermined specification limits, the item is reworked so that its quality characteristic is exactly equal to the target value. The specification limits are determined by the tradeoff among the cost incurred by imperfect quality, cost of rework and cost of inspection. The economic and statistical effects of inspection error on the complete inspection plan are investigated. Two models with considerations of inspection error are developed under different rework schemes, then compared with the model without inspection error consideration.
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