• Iorkegh Simon Tyozua
  Department of Statistics, University of Ilorin, Ilorin-Nigeria
  




• Osanaiye Peter
  Department of Statistics, University of Ilorin, Ilorin-Nigeria
  

In this paper, Hsu and Hsu (2012) Single-sampling cost minimization model is modified to incorporate inspection error. The modified model aims to maximize the probability of lot acceptance with an acceptable quality level (AQL) and minimizes the probability of lot acceptance with lot tolerant percent defective (LTPD). An optimal sampling plan that minimize the total cost and satisfied both the producer’s and the consumer’s risk requirement is determined. A comparison between the existing model and the modified model using the Operating characteristic (OC) curve, Average Total Inspection (ATI), and Total Cost (TC) is made. Sensitivity analysis is also carried out. Results showed that the modified model performed better and is more economical than the existing model in terms of cost-effectiveness.