Lele Engineering Pvt. Ltd. has been a supplier to Hindustan Machinery Manufacturers Ltd.

(HMML), a public sector Company. Lele supplies fasteners, mainly, and has been telling HMML that in spite of good quality being sent, HMML has been rejecting a number of good consignments causing much inconvenience and cost to Lele in terms of re-inspection, etc. Currently, HMML’s quality department checks 100 items from Lele’s consignments which are in batches of 10,000 items or more and accepts the batch if there are no more than 2 defectives in the sample. Is it possible to suggest a sampling procedure for HMML which will substantially alleviate Lele’s problem and yet not allow a worse than 2% bad quality to enter HMML’s factory?