Cost-Benefit Analysis for the MIL-STD-1916: A Case Study

Shu-Ing Liu, Ho-Tai Liu

Abstract


The purpose of this study is to numerically investigate the MIL-STD-1916 sampling plans, via the relationships between sampling verification levels and gross profits. The producer’s viewpoint, expected sampling inspection costs, costs due to customer rejection and the final gross profits are evaluated in a pseudo data case study. A hyper-geometric distribution compound with Poisson distribution is used to compute the qualifying probability and the customer rejection probability. The empirical results reveal that the industry must pay more attention to the impact of sampling inspection costs; if commercial quality control is not rigorous, gross profits could be seriously eroded.

Key words: Gross profit; Hyper-geometric distribution; MIL-STD-1916 sampling plans; Poisson distribution; Qualifying probability


Keywords


Gross profit; Hyper-geometric distribution; MIL-STD-1916 sampling plans; Poisson distribution; Qualifying probability



DOI: http://dx.doi.org/10.3968%2Fj.mse.1913035X20120601.1901

Refbacks

  • There are currently no refbacks.


Reminder

How to do online submission to another Journal?

If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures
Address: 730, 77e AV, Laval, Quebec, H7V 4A8, Canada

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org