Work

Economic optimisation of acceptance interval in conformity assessment for processes with known and unknown biases

Year: 2025

Type: article

Abstract: The optimisation of the acceptance interval in the conformity assessment of total inspections for processes with known and unknown biases is discussed from the perspective of maximising the producer’s revenue. It is assumed that the unknown bias and the random measurement errors in the inspection are derived from normal distributions with known variances. To maximise the revenue function, we propose a highly efficient algorithm. Moreover, comparisons with existing methods for determining the acceptance interval are conducted. We conclude that the proposed approach is superior because: (i) the economic model used is based on the concept of global consumer’s risk, modified to express the actual risk borne by consumers, (ii) both known and unknown biases, the latter of which has a significant impact on optimisation, are explicitly addressed, and (iii) maximising revenue provides an incentive for producers to set a guard band for the acceptance interval.

Source: Measurement

DOI: 10.1016/j.measurement.2025.119847

Authors: Katsuhiro Shirono, Junnosuke Takai, Hideyuki Tanaka

Institution: National Institute of Advanced Industrial Science and Technology

Language: English

Topic: Advanced Statistical Process Monitoring

Subfield: Statistics, Probability and Uncertainty

Field: Decision Sciences

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,760

Funder: Japan Society for the Promotion of Science