a Problem 5 (15 Points): (Acceptance Sampling) Suppose that Company Z has decided to use a Dodge-Romig AOQL plan for acc

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A Problem 5 15 Points Acceptance Sampling Suppose That Company Z Has Decided To Use A Dodge Romig Aoql Plan For Acc 1 (147.98 KiB) Viewed 33 times

a Problem 5 (15 Points): (Acceptance Sampling) Suppose that Company Z has decided to use a Dodge-Romig AOQL plan for acceptance sampling for a lot size of 2,500, with an AOQL of 3%. Part (a): (10 Points) Give six pairs of (n, c) that will approximately satisfy these quality and risk requirements. Part (b): (5 Points) Apparently, the company does not know what the fraction non- conforming of any given lot is. (The company does not know the non-conforming fraction of the vendor's production process either.) However, in order to select one with smallest amount of inspection effort (on average and in a long run) from multiple pairs of (n, c) that satisfy these quality and risk requirements, the company can “guestimate” where the fraction non-conforming may lie. Suppose that the company determine, for this secondary cost consideration, that the fraction non-conforming should be around 1%. What should be the Dodge-Romig AOQL Plan?