A lots-dependent variables sampling plan considering supplier’s process loss and buyer’s stipulated specifications requirement

Chien-Wei Wu, Zih-Huei Wang and Ming-Hung Shu

International Journal of Production Research, 2015, vol. 53, issue 20, 6308-6319

Abstract: A well-established scheme and mechanism for deciding product acceptance is perceived as a win-win situation for the long-term supplier–buyer relationship. In this paper, we develop a lots-dependent variables sampling scheme for product acceptance determination. The dependent state is based on the sample information of the process capability index that incorporates the supplier’s process loss and the buyer’s demanded specifications requirement. This main scheme is implemented by a three-rule process that accepts or rejects a related lot conditional on the sample results of past lots. The plan-operational parameters satisfying the desired quality levels and constraining the supplier–buyer risks are determined by a non-linear optimisation model. In performance comparisons, our proposed plan demonstrated higher cost effectiveness and discriminatory power than the traditional variables single sampling plan. Finally, industrial applicability of our recommended sampling plans was investigated in a case study.

Date: 2015
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DOI: 10.1080/00207543.2015.1053580

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