Joshua Simms has recently been placed in charge of purchasing at the Med-Tech Labs, a medical testing laboratory. His job is to purchase testing equipment and supplies. Med-Tech currently has a contract with a reputable supplier in the industry. Joshua’s job is to design an appropriate acceptance sampling plan for Med-Tech. The contract with the supplier states that the acceptable quality level is 1 percent defective. Also, the lot tolerance proportion defective is 4 percent, the producer’s risk is 5 percent, and the consumer’s risk is 10 percent.
(a) Develop an acceptance sampling plan for Joshua that meets the stated criteria.
(b) Draw the OC curve for the plan you developed.
(c) What is the AOQL of your plan, assuming a lot size of 1000?