Operations Management: Processes and Supply Chains, 12th Edition

Solved Problem

An inspection station has been installed between two production processes. The feeder process, when operating correctly, has an acceptable quality level of 3 percent. The consuming process, which is expensive, has a specified lot tolerance proportion defective of 8 percent. The feeding process produces in batch sizes; if a batch is rejected by the inspector, the entire batch must be checked and the defective items reworked. Consequently, management wants no more than a 5 percent producer’s risk and, because of the expensive process that follows, no more than a 10 percent chance of accepting a lot with 8 percent defectives or worse.

1. Determine the appropriate sample size, n, and the acceptable number of defective items in the sample, ...