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A production process operates in one of two states: the in-control state, in which most of the units produced conform to specifications, and an out-of control state, in which most of the units produced are defective. The process will shift from the in-control to the out-of-control state at random. Every hour, a quality control technician checks the process, and if it is in the out-of-control state, the technician detects this with probability p. Assume that when the process shifts out of control it does so immediately following a check by the inspector, and once a shift has occurred, the process cannot automatically correct itself. If t denotes the number of periods the process remains out of control following a shift before detection, find the probability distribution of t. Find the mean number of periods the process will remain in the out-of-control state.

Operation Management, Management Studies

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