Sampling risks, Supply Chain Management

Sampling Risks

Any uncertainty in a project plan that potentially can be controlled, tracked or identified is termed as Risk. Risk analysis involves consideration of uncertainties.

  • Sampling involves a risk that the sample will not adequately reflect the conditions in the lot.
  • A quantitative probabilistic method for uncertainty analysis includes the following:
  • Quantifying and assigning probabilistic distributions to the uncertain inputs.
  • Sampling the distributions of uncertain parameters in an iterative pattern.
  • Propagate uncertainties through any effective model.
  • Predict the results in terms of probabilistic measures.

However, the results of the probabilistic analysis depend on the number of sample being selected. Sampling risk analysis demands a sample plan. Sample plan is a plan that states sample sizes and the criteria to accept or reject items. The sample size needed for a specific analysis depend on various factors such as type of model, type of distributions and so on.  The general tendency is to reduce the sample as much as possible without realising the effect on decisions.       For example: the mean of the output requires a number of samples that is an order of magnitude less than the variance. Hence, it is desirable to use a sampling method that can predict the output probabilistic measure accurately with the minimum number of samples.  Many  sampling  methods  exist,  Quasi  Monte  Carlo being  one among them.

In inspection procedure, the probability, under the sampling plan used, means acceptable material will be rejected or that unsatisfactory material will be accepted.

Posted Date: 9/29/2012 2:46:27 AM | Location : United States







Related Discussions:- Sampling risks, Assignment Help, Ask Question on Sampling risks, Get Answer, Expert's Help, Sampling risks Discussions

Write discussion on Sampling risks
Your posts are moderated
Related Questions
topics of studies

Question 1 Briefly describe the four pillars of category management Question 2 Explain opportunity analysis Question 3 What are the additional tools used through out the

What are the activities in promotional mix?

describe three buying situations and the Service Output Demand of the buyer in each one.

What is Just-In-Time (JIT) approach? What are the reasons for adopting JIT in an organization? State the replenishment techniques used by retailers? Just in-time (JIT) JIT (Jus

Discuss the main factors that affect transportation decisions. Two main factors that affect transportation decisions- Carriers and Customers. Carriers - a)      Vehicle

Saki, a local bar, consumes Mehboob, a popular non-alcoholic drink, at a steady rate of 10 cases/week. Saki usually buys Mehboob at $6/case, delivered to its door. However, the su


Describe how negotiations with suppliers are conducted to obtain goods and services at accepted costs. What are the channels of distribution for the different types of goods?

R educing and controlling errors of measurement To reduce and control errors for all sources of measurement variation steps can be taken. By applying a numerical connectio