The Optimal Allocation Combination for the One-Sided Sequential Screening Procedure Based on the Individual Misclassification Error |
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Authors: | Shu-Fei Wu Ying-Po Lin |
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Affiliation: | 1. Department of Statistics, Tamkang University, Tamsui, Taipei, Taiwan, R.O.C.;2. Graduate Institute of Management Sciences, Tamkang University, Tamsui, Taipei, Taiwan, R.O.C. |
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Abstract: | In this article, the expected total costs of three kinds of quality cost functions for the one-sided sequential screening procedure based on the individual misclassification error are obtained, where the expected total cost is the sum of the expected cost of inspection, the expected cost of rejection, and the expected cost of quality. The computational formulas for three kinds of expected total costs are derived when k screening variables are allocated into r stages. The optimal allocation combination is determined based on the criterion of minimum expected total cost. At last, we give one example to illustrate the selection of the optimal allocation combination for the sequential screening procedure. |
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Keywords: | Average outgoing quality (AOQ) Expected cost of quality (ECQ) Individual nonconforming probability (INP or IME) Multivariate normal distribution (MVN) Sequential screening procedure (SQSP) |
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