
Quality in Procurement 449
The graph of AOQ in Figure 7�13 shows the typical behavior of AOQ� The
AOQ is small (good) with small (good) values for incoming quality p, and
it is also small (good) with large (bad) values of p� This is because when the
incoming quality is good, a large proportion of lots will be accepted in the
rst inspection, and the small proportion of rejected lots will be detailed�
Thus, the AOQ will be good, because a large proportion of the accepted lots
have only a small proportion of defectives� When the incoming quality is
bad, many lots will be rejected on rst inspection and rectied at detailing;
as a result, a large ...