In a continuous production sot up each item is defective wit

In a continuous production sot up each item is defective with p = 0.02. A continuous sampling plan is used in which k = 10 (exhaustive sampling until 10 non-defective items in a row) and f = 1/10 (only 10% of the* items are inspected). What fraction of items are inspected in the long-run ? What fraction of the items are accepted ? What fraction of the items that are accepted are defective?. A cost of $1 is incurred for every inspection and a cost of $100 is incurred whenever a defective item is accepted. Find the optimal values of k and f (minimize long-run average cost).

Solution

a)

fraction of items inspected = 0.10

fraction of items accepted = 0.98

fraction of intems accepted are defective = 10 * 0.02 = 0.2

b)

I can gladly help you but you should post it in a new question