The Dynamic programming method are developed for determining where to assign the inspection efforts in serial multi-stage production systems. The objective function is formulated to minimize the inspection and repairing costs. One of the major assumptions in this systems is that every assigned inspection stations should inspect the only items produced in manufacturing stages after the previous inspction station. The inspection stations can be assigned at every possible inspection stage after the manufacturing stages. Two type error is considered and screening inspection policy is assumed in this system and the defective items detected in tile inspection stations will be repaired or scraped by the defective types.