Application of Quick Switching System-1 with Single sampling Plan as reference plan through Minimum Sum of Risks in Determining Economic Ordering Policies under Permissible Delay in Payments

Abstract

Conventionally, all Economic Ordering model tacitly assumes that the immediate payment with the shipment of the products. But, in practice, the vendor may allow permissible delay in payments to the buyer. Quality management with minimized cost is the crucial factor for organization’s growth. Inspecting 100% of the products are time-consuming and costly especially when it involves destructive testing or inspection cost is huge. Acceptance sampling plan by attributes provides an effective solution to minimize the cost and consumes less time. Quick Switching System-1with two intensity of inspection is ease to apply as it enables instantaneous switch between normal and tightened inspection depends on the quality of the product. With more reliable products normal inspection is employed and vice versa.QSS-1 plan with minimum sum of risks carries another advantage of reducing the consumer and producer’s risk. With the application of the QSS-1 through minimum sum of risks on the EOQ model with permissible delay in payments buyer and vendor gets minimized cost, minimized risk and less time consuming process.