Cost-Benefit Analysis for the MIL-STD-1916: A Case Study
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
- There are currently no refbacks.
If you have already registered in Journal A and plan to submit article(s) to Journal B, please click the CATEGORIES, or JOURNALS A-Z on the right side of the "HOME".
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:
firstname.lastname@example.org; email@example.com; firstname.lastname@example.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