An Economic Inspection Model for a Multi‐component System

Presents an economic approach to inspecting a system consisting of several components, the questions of whether or when it is better to look at it as one unit or to divide it into its components or into subsets of its components. The objective function can be interpreted as the long‐term profit per time unit of operation which‐in the case of a production device with a constant production rate ‐ is equivalent to the long‐term profit per item produced. Gives a simple method on how to determine the economic design of an inspection policy.