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Economic Screening Procedures in Normal and Logistic Models when the Rejected Items are Reprocessed  

Hong, Sung-Hoon (Department of Industrial and Systems Engineering, Chonbuk National University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.28, no.3, 2002 , pp. 240-246 More about this Journal
Abstract
In this paper, economic screening procedures with dichotomous performance variable T and continuous screening variable X are considered when the rejected items are reprocessed. Two models are considered; normal and logistic models. It is assumed that X given T is normally distributed in the normal model, and P(T=1|X=x) is given by a logistic function in the logistic model. Profit models are constructed which involve four price/cost components; selling price, cost from an accepted nonconforming item, and reprocessing and inspection costs. Methods of finding the optimal screening procedures are presented and numerical examples are given.
Keywords
screening procedures; logistic model; normal model; performance variable; screening variable;
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