Including quality costs in the lot-sizing decision

In recent years, acceptance sampling has been downplayed as a recommended tool because of the implication that quality is inspected into the product. Nevertheless, Vardeman[1] pointed out that there is a place for the implementation of acceptance sampling, that being when the quality produced by a process is not stable. Duncan[2] also suggested acceptance sampling as viable when “lot quality wanders about in an unpredictable manner”. Hence, acceptance sampling procedures can be attractive in certain situations. Juran and Gryna[3] specified the cost of quality when acceptance sampling techniques are applied. In our paper, we...