Question

In: Operations Management

You have just received a batch of goods from your supplier. You plan to sample the...

You have just received a batch of goods from your supplier. You plan to sample the batch in order to determine whether you will accept it or not. For this product, your contract with the supplier specifies that 3.0% is an acceptable quality level and the LTPD is 18.0%. The contract further specifies that the buyer’s risk should be 2.5% and the seller’s risk should be 1.0%.
Given these parameters for your sampling plan, what is the least number of defective items you would have to find in the sample so as to reject the batch?

Solutions

Expert Solution

Here

p1 = 0.03

p2 = 0.18

a=0.01

b=0.025

= 1/6 = 0.166

We can see from the above table that for degrees of freedom 14, the values of chi-square for 0.99 and 0.025 is close to 0.166

2(c+1)=14, c= 6

Thus the least no. of defective items = 7

keosha answered 8 months ago
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