Reference no: EM131196176

Caption: The possibility of a labor stoppage at TNH Industry is becoming greater and greater as the collective bargaining negotiations with the union have broken down. Although they have a contingency plan for management to operate the machinery if a strike should occur, they only have enough people trained to cover 5% capacity of the normal distribution.

Manny: I am getting more and more uneasy about this situation. We've had four formal complaints filed already.

Abdul: Even with our contingency plan in place, we need more concrete information about how a labor stoppage could affect production numbers. I know that you've helped us with this already, but could you take another look? Exactly how many tires could be produced per day under these circumstances?

Questions:

The average number of tires produced each day at the processing plant is 20,000 with a standard deviation of 2,300.

1. How many tires would be produced per day under these circumstances? (You must show detail work)