IDEAS home Printed from https://ideas.repec.org/a/wly/navres/v42y1995i7p1081-1097.html
   My bibliography  Save this article

An economic two‐stage screening procedure with a prescribed outgoing quality in logistic and normal models

Author

Listed:
  • Do Sun Bai
  • Hyuck Moo Kwon
  • Min Koo Lee

Abstract

An economic two‐stage screening procedure based on a dichotomous performance variable T and a continuous screening variable X is proposed. X is measured first to decide whether an item should be accepted, rejected, or additional observations should be taken. If no terminal decision is reached, T is then observed to classify the undecided items. Two models are considered; (i) the logistic model, where P(T = 1|X = x) is assumed to be a logistic function of x, and (ii) the normal model, where X given T is assumed to be normally distributed. A simple economic model based on inspection and misclassification costs is constructed. Optimal cutoff values on the screening variable are obtained by minimizing the expected cost subject to the constraint that the average outgoing quality attains a pre‐specified level. Solutions are provided for both known‐parameter and unknown‐parameter cases. © 1995 John Wiley & Sons, Inc.

Suggested Citation

  • Do Sun Bai & Hyuck Moo Kwon & Min Koo Lee, 1995. "An economic two‐stage screening procedure with a prescribed outgoing quality in logistic and normal models," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(7), pages 1081-1097, October.
  • Handle: RePEc:wly:navres:v:42:y:1995:i:7:p:1081-1097
    DOI: 10.1002/1520-6750(199510)42:73.0.CO;2-X
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/1520-6750(199510)42:73.0.CO;2-X
    Download Restriction: no

    File URL: https://libkey.io/10.1002/1520-6750(199510)42:73.0.CO;2-X?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Do Sun Bai & Sung Hoon Hong, 1992. "Economic screening procedures using a correlated variable with multidecision alternatives," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(4), pages 471-485, June.
    2. Do Bai & Sang Kim & Moon Riew, 1990. "Economic screening procedures based on correlated variables," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 37(1), pages 263-280, December.
    3. Do Bai & Min Lee, 1993. "Economic designs of single and double screening procedures," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 40(1), pages 95-113, December.
    4. Kwei Tang, 1988. "Design of a two‐stage screening procedure using correlated variables: A loss function approach," Naval Research Logistics (NRL), John Wiley & Sons, vol. 35(5), pages 513-533, October.
    5. Herbert Moskowitz & Hsien-Tang Tsai, 1988. "A One-Sided Double Screening Procedure Using Individual Unit Misclassification Error," Management Science, INFORMS, vol. 34(9), pages 1139-1153, September.
    6. Moskowitz, Herbert & Plante, Robert & Tsai, Hsien-Tang, 1991. "Single-sided economic screening models incorporating individual unit misclassification error and risk preference," European Journal of Operational Research, Elsevier, vol. 53(2), pages 228-243, July.
    7. Sang Boo Kim & Do Sun Bai, 1990. "Economic screening procedures in logistic and normal models," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(6), pages 919-928, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. R. J. Boys & K. D. Glazebrook & D. J. Laws, 1996. "A class of Bayes‐optimal two‐stage screens," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(8), pages 1109-1125, December.
    2. Lee, Min Koo & Elsayed, Elsayed A., 2002. "Process mean and screening limits for filling processes under two-stage screening procedure," European Journal of Operational Research, Elsevier, vol. 138(1), pages 118-126, April.
    3. Costa, Antonio F. B. & De Magalhaes, Maysa S., 2005. "Economic design of two-stage charts: The Markov chain approach," International Journal of Production Economics, Elsevier, vol. 95(1), pages 9-20, January.
    4. Lee, Min Koo & Jang, Joong Soon, 1997. "The optimum target values for a production process with three-class screening," International Journal of Production Economics, Elsevier, vol. 49(2), pages 91-99, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bai, Do Sun & Lee, Min Koo, 1995. "Minimum cost single and double screening procedures with dichotomous performance variable," International Journal of Production Economics, Elsevier, vol. 39(3), pages 255-264, May.
    2. Do Bai & Hyuck Kwon, 1995. "Economic design of a two-stage screening procedure with a prescribed outgoing quality," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 42(1), pages 1-18, December.
    3. R. J. Boys & K. D. Glazebrook & D. J. Laws, 1996. "A class of Bayes‐optimal two‐stage screens," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(8), pages 1109-1125, December.
    4. Do Bai & Min Lee, 1996. "Economic designs of two-sided single and double screening procedures," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 44(1), pages 53-69, December.
    5. Lee, Min Koo & Elsayed, Elsayed A., 2002. "Process mean and screening limits for filling processes under two-stage screening procedure," European Journal of Operational Research, Elsevier, vol. 138(1), pages 118-126, April.
    6. S. Kim & D. Bai, 1992. "Economic design of one-sided screening procedures based on a correlated variable with all parameters unknown," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 39(1), pages 85-93, December.
    7. Do Bai & Min Lee, 1993. "Economic designs of single and double screening procedures," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 40(1), pages 95-113, December.
    8. H-T Tsai & L C Thomas & H-C Yeh, 2005. "An economic model for credit assessment problems using screening approaches," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(7), pages 836-843, July.
    9. Jooho Lee & Woo‐Joo Kwon, 1999. "Economic design of a two‐stage control chart based on both performance and surrogate variables," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(8), pages 958-977, December.
    10. Hong, Sung Hoon & Kim, Sang Boo & Kwon, Hyuck Moo & Lee, Min Koo, 1998. "Economic design of screening procedures when the rejected items are reprocessed," European Journal of Operational Research, Elsevier, vol. 108(1), pages 65-73, July.
    11. Bai, Do Sun & Kwon, Hyuck Moo, 1997. "A note on the design of a two-sided, two-stage screening procedure with a prescribed outgoing quality," European Journal of Operational Research, Elsevier, vol. 97(1), pages 17-21, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:navres:v:42:y:1995:i:7:p:1081-1097. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1520-6750 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.