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Economic screening procedures based on correlated variables

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Summary

Economic screening procedures for improving outgoing product quality based on screening variables are presented for the cases of one- and two-sided specification limits. It is assumed that the performance and screening variables are jointly normally distributed and that costs are incurred by screening inspection and misclassification errors. When all parameters are known, a closed-form solution is obtained for the case of one-sided specification limit and an approximate closed-form solution is derived for the case of two-sided specification limits. Methods for finding optimal solutions based on normal conditioned ont-distribution are presented for the cases of unknown parameters.

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Authors and Affiliations

  1. Department of Industrial Engineering, Korea Advanced Institute of Science and Technology, P.O. Box 150, Chongyangni, Seoul, Korea

    Do Sun Bai & Sang Boo Kim

  2. Department of Business Administration, Korea University, Jochiwon, Korea

    Moon Charn Riew

Authors
  1. Do Sun Bai
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  2. Sang Boo Kim
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  3. Moon Charn Riew
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Bai, D.S., Kim, S.B. & Riew, M.C. Economic screening procedures based on correlated variables. Metrika 37, 263–280 (1990). https://doi.org/10.1007/BF02613533

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  • DOI: https://doi.org/10.1007/BF02613533

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