Exam 10: Extension: Acceptance Sampling

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Suppose we have a lot of several thousand units of a finished good. For an acceptance sampling plan with n = 20 and c = 2, what will be the average outgoing quality for lots with 5 percent defectives? 10 percent? 15 percent? 20 percent?

(Short Answer)
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A quality inspector for Alpha-Beta Co. is concerned about the quality of the batch of several thousand blank DVD disks which his company produced this week and is preparing to ship. If the cost of replacing a defective DVD disk once it has been shipped is $2.00, while the cost of 100 percent inspection prior to shipment is $.40 each, at what point is he indifferent between 100 percent inspection and shipment without inspection?

(Multiple Choice)
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The AQL indicates:

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The quality manager for Graphics, Inc., is concerned about the quality of the lot of several thousand posters which her company printed this week and is now preparing to ship. If she uses an acceptance sampling plan of n = 10 and c = 2, what is the probability that, if this lot is 10 percent defective, it will be accepted for shipment without inspection?

(Multiple Choice)
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The quality manager for Microelectronics, Inc., is concerned about the quality of the batch of several thousand Z-box games which his company is about to ship. If the cost of replacing a defective Z-box game once it has been shipped is $5.00, while the cost of complete (100 percent) inspection prior to shipment is $.20 each, at what point is he indifferent between complete inspection and shipment without inspection?

(Multiple Choice)
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Suppose a batch is of acceptable quality. There is a 10 percent chance that it will be rejected. Thus, ________ is 10 percent.

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A good sampling plan will occasionally reject a lot with very good quality.

(True/False)
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The quality manager for Microelectronics, Inc., is concerned about the quality of the batch of several thousand Z-box games which his company is about to ship. If, based on his acceptance sample, he decides to ship this batch without inspection, which type error would be possible?

(Multiple Choice)
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A manufacturer purchases large quantities of metal brackets from several suppliers. The brackets are shipped in lots of 8,000 each. Random samples of 40 brackets are taken from each lot, and the lot is rejected if any defectives are discovered. Rejected lots are subjected to 100 percent inspection, and any defectives are replaced with good brackets. Determine the average outgoing quality limit for this sampling plan.

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The purpose of acceptance sampling is to decide whether a batch of items satisfies pre-determined standards.

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Suppose we have a lot of several thousand units of a finished good. If this lot were 5 percent defective, what type error would be possible? For an acceptance sampling plan with n = 20 and c = 2, what would be the risk of this error?

(Short Answer)
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Acceptance sampling plans must specify the lot size, the sample size, and the acceptance/rejection criteria.

(True/False)
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Given the following acceptance sampling data for a lot of several thousand units of a finished good: Per-unit cost of replacing a defective unit after it has been shipped is $5.00 Per-unit cost of 100 percent inspection prior to shipment is $.60. What is the point of indifference between 100 percent inspection and shipment without inspection?

(Short Answer)
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The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot of several thousand pizzas which his company produced this week, and is now ready to ship. If the cost of replacing a defective pizza once it has been shipped is $5.00, while the cost of complete (100 percent) inspection prior to shipment is $.30 per pizza, what is the point of indifference between complete inspection and shipment without inspection?

(Multiple Choice)
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An AOQ curve shows:

(Multiple Choice)
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Flexible acceptance sampling revises the sampling plan in response to actual results.

(True/False)
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A firm uses acceptance sampling to evaluate batches of inputs. Ideally, the defect rate would be no more than 3.5 percent. The firm knows that on occasion, batches with higher defect rates will be accepted. However, if the defect rate reaches 7 percent, the firm would like there to be very little chance of that batch being accepted. This value, 7 percent, is the firm's:

(Short Answer)
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Acceptance sampling is a form of inspection applied to items during an ongoing process.

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Acceptance sampling is applied to batches of items during the production process.

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Acceptance sampling plans might call for the selection of:

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