Acceptance Sampling with Rectification When Inspection Errors are Present

In this paper we consider the problem of estimating the number of nonconformances remaining in outgoing lots after acceptance sampling with rectification when inspection errors can occur. We show that inspection errors can have a serious biasing effect on the predictor that Greenberg and Stokes (1992) propose for the number of undetected nonconformances. We develop a new bias-corrected predictor of this quantity. A simulation study shows that this predictor performs well with respect to mean square error under a wide range of scenarios. We also propose a predictor for the number of conforming items rejected.