Design of economically optimal acceptance sampling plans with inspection error

Models to determine economically optimal quality control systems have appeared in the literature for a number of years and involved a variety of approaches. This approach is unique because of the following reasons: (1) A continuous loss function is used to quantify deviations between a quality characteristic and its target level. (2) Inspector error is modeled explicitly as is the ability to influence this error with resources. (3) The models are used to construct graphs that allow practitioners to design near optimal inspection plans with a minimal understanding of the model details.