This thesis is concerned with the determination of an economic sampling inspection plan for the incoming components which are assembled into a final product.
An assembled product is composed of a specified number of identical components such that if one or more components are defective the assembled product is defective. The penalty cost due to a defective assembled product is not proportional to the number of its defective components. Three inspection plans are considered; no inspection, sampling inspection, and 100% screening.
An optimal inspection policy which minimizes the overall quality cost is selected under the assumption that the fraction defective of an incoming component varies from lot to lot.
Numerical examples with beta prior are given.