Abstract
In this paper, a new acceptance sampling model is proposed to decide about the received lot based on cost objective function. Bayesian inference is used to update the probability distribution function of the proportion of defectives. Moreover, to determine the optimal decision, the Bayesian inference along with backward induction is utilized to evaluate the expected cost of different decisions. A numerical example is solved, and sensitivity analysis is carried out on the parameters of the proposed methodology in order to analyse the optimal solution in different conditions.