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A One-Sided Double Screening Procedure Using Individual Unit Misclassification Error

Author

Listed:
  • Herbert Moskowitz

    (Krannert Graduate School of Management, Purdue University, West Lafayette, Indiana 47907)

  • Hsien-Tang Tsai

    (Department of Business Management, National Sun-Yat Sen University, Kaosiung, Taiwan, ROC)

Abstract

A double screening procedure (DSP), which controls for individual unit misclassification error (IME) as well as average outgoing quality (AOQ), for quality control applications is developed. Screening involves selecting items whose performance is within specifications based on observing one or more correlated surrogate (screening) variables in lieu of the performance variable directly. In double screening, two screening variables, which are correlated to a performance variable, are observed sequentially, rather than simultaneously as in a single screening plan (SSP); namely, (l) one screening variable is used first to make one of three decisions---accept, reject, or undecided---according to the magnitude of the individual nonconforming probability (equivalent to the IME for an accepted item); (2) after this first screening, the second screening variable is employed to screen the undecided items. Assuming conditions of normality, formulae for computing the selection ratio (proportion of accepted items) and AOQ are derived for a DSP. The impact of the intercorrelation between two screening variables on the sequencing of a DSP and the performance between an SSP versus DSP are examined. A DSP reduces inspection cost considerably relative to an SSP employing two screening variables. Producer's risk is also diminished at a nominal sacrifice in consumer's risk. Implementation of a DSP requires only the use of several simple formulas and readily available standard normal tables.

Suggested Citation

  • Herbert Moskowitz & Hsien-Tang Tsai, 1988. "A One-Sided Double Screening Procedure Using Individual Unit Misclassification Error," Management Science, INFORMS, vol. 34(9), pages 1139-1153, September.
  • Handle: RePEc:inm:ormnsc:v:34:y:1988:i:9:p:1139-1153
    DOI: 10.1287/mnsc.34.9.1139
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    Citations

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    Cited by:

    1. H-T Tsai & L C Thomas & H-C Yeh, 2005. "An economic model for credit assessment problems using screening approaches," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(7), pages 836-843, July.
    2. Do Sun Bai & Hyuck Moo Kwon & Min Koo Lee, 1995. "An economic two‐stage screening procedure with a prescribed outgoing quality in logistic and normal models," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(7), pages 1081-1097, October.
    3. Bai, Do Sun & Lee, Min Koo, 1995. "Minimum cost single and double screening procedures with dichotomous performance variable," International Journal of Production Economics, Elsevier, vol. 39(3), pages 255-264, May.
    4. Do Bai & Hyuck Kwon, 1995. "Economic design of a two-stage screening procedure with a prescribed outgoing quality," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 42(1), pages 1-18, December.
    5. Do Bai & Min Lee, 1993. "Economic designs of single and double screening procedures," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 40(1), pages 95-113, December.

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