The cost of operating in an out of control state

Assignment Help Operation Management

Reference no: EM13964693

You are a Quality Control consultant. You design control systems such in order to minimize the overall expected cost per hour. This afternoon you are planning to meet with two clients regarding their processes, but you have accidentally mixed up their files. You have the output for each. One scheme has an optimal n = 5, h = 1, and k = 2.3. The other scheme has an optimal n = 5, h = 1, and k = 3.2. Below is a description of the main characteristics of your two clients’ processes. Determine which scheme goes with each client. You must explain your reasoning to receive any credit.

Client A: The cost of operating in an out of control state is $1000 per hour because you have to scrap most of your production, while the cost of investigating a false alarm is $100 per hour.

Client B: The cost of operating in an out of control state is $20 per hour, and the cost of investigating a false alarm is $200 per hour because you have to stop the entire process anytime there is an out of control signal.

Reference no: EM13964693

Questions Cloud

How tools such as master scheduling-MRP and DRP : Explain in your own words how tools such as master scheduling, MRP, and DRP can be used to coordinate activity up and down a supply chain. For example, what information might we share with our customers? Our suppliers? What information might we want ..

Concerned with personal aspects of employees lives : Should Criminal Justice managers be concerned with the personal aspects of employee's lives? Will this concern necessarily translate into effective leadership in that organization?

Frequency distribution table and a pie chart : a.) Construct a frequency distribution table and a pie chart for this data. b.) What category comprises most of the sample?

How far north should that receiver by moved : Two 1.0M-Hz radio antennas emitting in-phase are separated by 600m along a north-south line. A radio receiver placed 2.0 km east is equidistant from both the transmitting antennas and picks up a fairly strong signal. How far north should that rec..

The cost of operating in an out of control state : You are a Quality Control consultant. You design control systems such in order to minimize the overall expected cost per hour. This afternoon you are planning to meet with two clients regarding their processes, but you have accidentally mixed up thei..

Calculate the heat of vaporization of water. : In an experiment, a certain amount of steam was allowed to mix with a known mass of cold water whose temperature is known. The change in temperature was noted. From the data obtained, calculate the heat of vaporization of water.

Draw a schematic diagram of a michelson interferometer : For monochromatic light, derive an expression for the intensity of the interference fringes as a function of the angle θ of observation to the optical axis of the instrument, and D, the difference in the path-length on the optical axis between the ..

At what level of output does the avc reach its minimum : At what level of output does the AVC reach its minimum? What is the AVC at this output level? Suppose the price of the product is P = $125. Determine the profit maximizing level of output?

Assuming that the cvp analysis is correct : Assuming that the CVP analysis is correct, is it likely that the company's inventory level increased, decreased, or remained unchanged during the year? Explain.

User Account

All Pages