Sequential Sampling with Price-Adjustment,

Abstract : The paper extends the relatively new concept of price-adjustment sampling to the area of sequential sampling. The basic purpose of this new inspection technique is to eliminate the process of rejecting lots while retaining the advantages of sequential sampling. The history of acceptance sampling is first discussed to illustrate the development of some of the standard sampling techniques of today. The theory and procedures of sequential sampling are then reviewed as background for the development of Sequential Sampling with Price-Adjustment (SSPA). Next, the SSPA plans are developed and several sets of SSPA indifference curves are presented. Finally, the advantages and disadvantages of SSPA are discussed. Suggestions are offered concerning the utilization of SSPA and recommendations are given for future study on related topics. (Author)