Journal of the military operations research society of Korea (한국국방경영분석학회지)
- Volume 11 Issue 2
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- Pages.64-68
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- 1985
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- 1229-9898(pISSN)
Determination of Preliminary Sample Size for the Maximization of Producer's Revenue
생산자의 수입을 최대화하는 예비 검사량 결정
Abstract
This paper considers the following case: (1) the product is paid by the right price for a lot accepted by a given consumer's acceptance sampling plan, and (2) the product is paid by the discounted price for a lot rejected by this plan. In such a case, the producer's sampling plan need not be the same as that of the consumer's. From the producer's view point, the producer need to determine the preliminary sample size which maximizes his revenue. This paper, therefore, determines an optimal preliminary sample size from the producer's view point. This preliminary sample size is affected by the consumer's acceptance sampling plan, percent defective, preliminary inspection cost and the discount rate of the price.
Keywords