A supplier ships a product in lots of size N = 8,000. We wish to have an AOQL of 3%, and we are going to use single sampling. We do not know the supplier’s process fallout but suspect that it is at most 1% defective.
(a) Find the appropriate Dodge–Romig plan.
(b) Find the ATI for this plan, assuming that incoming lots are 1% defective.
(c) Suppose that our estimate of the supplier’s process average is incorrect and that it is really 0.25% defective. What sampling plan should we have used? What reduction in ATI would have been realized if we had used the correct plan?