Economic optimization of off-line inspection with inspection errors

In this paper, we find the optimal inspection policy for the production process of a finite batch of items with inspection errors. We study the effects of inspection errors on the optimal solution and determine which unit should be inspected to minimize the expected total costs. We also find the expected number of inspections for a given batch size. Comparisons of total costs are investigated numerically among the cost minimizing policy, the policy of perfect information, and the policy of zero-defects.