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Cost effectiveness of using a correlated variable in a complete inspection plan when inspection error is present

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  • Kwei Tang
  • Helmut Schneider

Abstract

Due to advances in automated manufacturing systems and automatic inspection equipment, complete inspection (screening) has drawn increased attention recently and has become a widespread practice. Screening can be based on the performance variable of interest or on a variable which is correlated with the performance variable. Using a correlated variable as the screening variable is attractive when the inspection on the performance variable is destructive or costly. The purpose of this article is to illustrate both theoretically and empirically when a correlated variable rather than the performance variable should be used as the screening variable when inspection error is present.

Suggested Citation

  • Kwei Tang & Helmut Schneider, 1990. "Cost effectiveness of using a correlated variable in a complete inspection plan when inspection error is present," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(6), pages 893-904, December.
    • Handle: RePEc:wly:navres:v:37:y:1990:i:6:p:893-904
    DOI: 10.1002/1520-6750(199012)37:63.0.CO;2-B
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    Cited by:

    1. Cheong Ng, Wing & Van Hui, Yer, 1997. "Economic design of a complete inspection plan with interactive quality improvement," European Journal of Operational Research, Elsevier, vol. 96(1), pages 122-129, January.
    2. Yu, Hong-Fwu & Yu, Wen-Ching, 2007. "An optimal mixed policy of inspection and burn-in and the optimal production quantity," International Journal of Production Economics, Elsevier, vol. 105(2), pages 483-491, February.
    3. Hong, Sung Hoon & Cho, Byung Rae, 2007. "Joint optimization of process target mean and tolerance limits with measurement errors under multi-decision alternatives," European Journal of Operational Research, Elsevier, vol. 183(1), pages 327-335, November.

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