The economic effect of measurement error on variables acceptance sampling

Abstract

Considerable attention to the economics of variables acceptance sampling has recently emphasized that the alpha-beta approach to sampling plan design may be far from optimal. Similarly, recent results conclusively show that measurement error manifested as bias (inaccuracy) and imprecision (variability) can have disastrous effects upon the OC curve of a variables sampling plan. This paper quantitatively combines economics and error and clearly illustrates the adverse monetary effects of imperfect measurement in situations where variables acceptance sampling is used