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Designing a variable sampling plan based on Taguchi's loss function

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  • Reay-Chen Wang

Abstract

This paper discusses the problem of designing a new variable sampling plan. Suppose that the lot quality characteristic obeys an exponential distribution. Adopting Taguchi's loss function, the objective is to design a plan under which the producer's risk of rejecting a lot that has a specified average loss per item is no greater than alpha, and the consumer's risk of accepting a lot that has a specified average loss per item is no greater than beta. The method of designing this plan is an extension of the method used by Derman and Ross.

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  • Reay-Chen Wang, 1999. "Designing a variable sampling plan based on Taguchi's loss function," Journal of Applied Statistics, Taylor & Francis Journals, vol. 26(3), pages 309-313.
    • Handle: RePEc:taf:japsta:v:26:y:1999:i:3:p:309-313
    DOI: 10.1080/02664769922421
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