Illustrate what is the price to test each unit

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Reference no: EM1375808

Q. O/p from a process contains 0.02 defective units. Defective units which go undetected into final assemblies price $25 each to replace. An inspection process, which would detect also remove all defectives, can be established to test these units. Explain however the inspector, who can test 20 units per hour, is paid $8 per hour, including fringe benefits.

a. Should an inspection station be established to test all units?

b. Illustrate what is the price to test each unit?

c. Illustrate what is the benefit (or loss) from the inspection process?

Reference no: EM1375808

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