ECONOMIC ACCEPTANCE SAMPLING BY VARIABLES WITH QUADRATIC QUALITY COSTS

An economic model is developed, to assist in the selection of minimum cost acceptance sampling plans by variables. The quadratic Taguchi loss function is adopted to model the cost of accepting items, with quality characteristics deviating from the target value. The case of a normally distributed quality characteristic with known variance is examined, and a simple and efficient optimization algorithm is proposed. Comparisons with other methods of deriving sampling plans reveal that the cost penalties for using an inappropriate plan may be very large.