Compute the quality-productivity ratio

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Reference no: EM131273704

The total processing cost for producing the X-Pacer running shoe in Problem 2-5 is $18. The Omega Shoe Company starts production of 650 pairs of the shoes weekly, and the average weekly yield is 90%, with 10% defective shoes. One quarter of the defective shoes can be reworked at a cost of $3.75.

a. Compute the quality-productivity ratio (QPR).

b. Compute the QPR if the production rate is increased to 800 pairs of shoes per week.

c. Compute the QPR if the processing cost is reduced to $16.50 and the rework cost to $3.20.

d. Compute the QPR if the product yield is increased to 93% good quality.

Reference no: EM131273704

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