ABSTRACT
Formally, let v = {uj,. . . , vN} be the known monetary values of the N items {q,. . . , /#} which comprise a shipment provided by a supplier, let
θ = {θ\,... ,ΘΝ], 0 > Oj > 1, be the unknown probabilities of each of them being nonconforming, and let us assume that an inspection strategy is required to minimize the probable total monetary value of undetected nonconforming items. If N is large, the cost of a complete inspection will typi cally be prohibitive, and hence a sampling procedure is necessary. It is also required that the items to be inspected could not be anticipated by the supplier, and hence a probabilistic sampling procedure is essential.
