Concerned about the quality of batch of several thousand

Assignment Help Operation Management

Reference no: EM131652693

Charles, a Quality Inspector for Queen Washers, is concerned about the quality of a batch of several thousand items that his company will be receiving next week. Queen Washers manufactures washers for laundromats and is expecting a shipment of drive motors, an important component of the washer. Charles decides to first conduct a break-even analysis to see which inspection approach might be most appropriate from a cost perspective—no inspection, sampling, or full inspection. Charles assumes that the number of defective items in each batch is a random variable. Accordingly, if the cost of replacing a defective drive motor once it has been assembled is $51 and the cost of inspecting items in the incoming shipment is $2 each, below what estimated proportion of defectives in the batch would Charles prefer to use a sampling methodology instead of 100% inspection? 3.5% defective 2.2% defective 3.9% defective 5.1% defective.

Reference no: EM131652693

Questions Cloud

What are supply chain imbalances : What factors in the PESTEL framework are most important when entering the foreign market and why? What are supply chain imbalances?

Recognize emotions in other cultures than in own culture : It is more difficult for people to recognize emotions in other cultures than in their own culture.

The consumer era to the relationship era : Discuss how brand building is changing as marketing moves from the consumer era to the relationship era.

About the quality of batch of several thousand items : Richard, a Quality Inspector for Modern Cycles, is concerned about the quality of a batch of several thousand items that his company will be receiving next week

Concerned about the quality of batch of several thousand : Charles, a Quality Inspector for Queen Washers, is concerned about the quality of batch of several thousand items that his company will be receiving next week.

What leadership style will leader in your organization : What leadership style(s) will a leader in your organization have to demonstrate? How could you incorporate Servant Leadership?

Close-out report and archiving in project management : Discuss Preparing a Close-Out Report and Archiving in Project Management?

What might the business do to maintain or earn your loyalty : Think about a customer service experience—good or bad—that you have had with a company. What might the business do to maintain or earn your loyalty?

Performing exhaustive environmental scan to spot trends : performing an exhaustive environmental scan to spot trends and opportunities in the economic, political, technological, cultural, and competitive arenas.

User Account

All Pages