Economic Analysis of Acceptance Inspection Sampling: Combining Incentives with Policy Optimization for Process Improvement

The cost of acceptance inspection sampling is an important criterion in evaluating inspection schemes as well as a major reason for sampling inspection being considered more efficient than overall inspection. In this paper, we examine economic cost of a single-sample plan and discuss the cost drivers. Specifically, Acceptance Number (A) and Sample Size (n) are the decision variables of the sample plan that provides incentive for producers to alter their quality level. We discover that manufacturers may have incentives to improve or reduce control of product quality by changing acceptance sampling schemes due to impact of economic parameters.