Journal of Applied Mathematics and Stochastic Analysis
Volume 11 (1998), Issue 3, Pages 225-230
doi:10.1155/S1048953398000197
Nonlinear filtering and optimal quality control
The Beneš Group, 26 Taylor Street, Millburn, NJ 07041, USA
Received 1 October 1997; Revised 1 January 1998
Copyright © 1998 Václav E. Beneš. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
Some stochastic models of optimal decision processes in quality control problems are formulated, analyzed, and solved. It is assumed that costs, positive or negative, are assigned to various events in a simple manufacturing
model, such as processing an item, producing a saleable item, discarding
an item for salvage, selling a “lemon”, etc. and models are described by
giving a sequence of events, some of which are decisions to process, to
abandon, to accept, to restart, …. All the models have the rather unrealistic classical information pattern of cumulative data. The object is then to
find optimal procedures for minimizing the total cost incurred, first in dealing with a single item, and second, in operating until an item first passes
all the tests. The policies that appear as optimal depend on such matters
as whether a conditional probability given certain data exceeds a ratio of
prices, and on more complex functionals of the conditional expectations in
the problem. Special “sufficient” classes of policies are discerned, which reduce the decision problem to finding one number.