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The optimal allocation combination for the two-sided sequential screening procedure based on the individual misclassification error
Abstract:In this paper, the expected total costs (ETCs) of three kinds of quality cost functions for the two-sided sequential screening procedure (SQSP) based on the individual misclassification error are obtained, where the ETC is the sum of the expected cost of inspection, the expected cost of rejection and the expected cost of quality. The general formulas for all the desired probabilities and three ETCs when k screening variables are allocated into r-stages are derived. The optimal allocation combination for each ETC is determined based on the criterion of minimum ETC. Finally, we give two examples to illustrate the selection of the optimal allocation combination for the SQSP.
Keywords:average outgoing quality  expected cost of quality  expected total cost  individual nonconforming probability or individual misclassification error  multivariate normal distribution  sequential screening procedure
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