Determining an Economically Optimal (N,C) Design via Using Loss Functions

Abstract

In this paper, we introduce a new sampling plan based on the defective proportion of batch. The proposed sampling plan is based on the distribution function of the proportion defective. A continuous loss function is used to quantify deviations between the proportion defective and its acceptance quality level (AQL). For practical purpose, a sensitivity analysis is carried out on the different values of the required sample sizes that allow practitioners to design near optimal inspection plans. A numerical example is presented to illustrate how the proposed procedure can be applied to design acceptance plans.

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