What is the annual cost of fixing plus scrapping

Assignment Help Operation Management

Reference no: EM131034497

In Pullman, one of the largest engineering firms is Schweitzer Engineering Labs (SEL). One of the products they produce is 1000 μm diameter fiber optic cables. The tolerance for the diameter is ± 0.0015 μm. Assume the process is normally distributed with a mean of 1000 μm and variance, σ^2= 0.00000075. Any cable with a diameter smaller than the lower spec limit is scrapped at a cost of $1. Any cable with a diameter above the upper spec limit is fixed for a cost of $0.75 per cable. Assuming that 100 cables are produced per day and that there are 250 working days per year, what is the annual cost of fixing plus scrapping?

Reference no: EM131034497

Questions Cloud

Indicate the type of non experimental approach : For each of the research topics listed below, indicate the type of non experimental approach that would be most useful and explain why. a) Pushing ahead in line, b) Daydreaming, c) Locating the most popular painting in an art gallery, d) Studiousness..

Describe current issues in business : Describe current issues in business that impact operations management, Please provide a response to the following discussion topic: Agility refers to the ability of an organization to respond quickly to demands or opportunities.

Crisses made payments on contract with checks payable : Homeowners Jim and Lisa Criss hired Kevin and Cathie Pappas, doing business as Outside Creations, to undertake a landscaping project. Kevin signed the parties' contract as "The Crisses made payments on the contract with checks payable to Kevin, who d..

What is the annual cost of fixing plus scrapping : In Pullman, one of the largest engineering firms is Schweitzer Engineering Labs (SEL). One of the products they produce is 1000 μm diameter fiber optic cables. The tolerance for the diameter is ± 0.0015 μm. Assuming that 100 cables are produced per d..

Time schedule in which to solicit orders-service customers : ABC Tire Corp. hires Arnez as a traveling salesperson and assigns him a geographic area and time schedule in which to solicit orders and service customers. Arnez is given a company car to use in converging the territory. The driver of the tractor. Th..

Organizational design-staffing and performance management : What are the human resource issues facing the vice president's department and under which of the HR domains (e.g. Organizational Design, Staffing, Performance Management an Appraisal) does each issue belong? Identify some strategies for dealing with ..

Fundamental to the development of our legal tradition : Sources of Law. This chapter discussed a number of sources of American law. Which source of law takes priority in the following situations, and why? Stare Decisis. In the text of this chapter, we stated that the doctrine of stare decisis" became a co..

Express authority to solicit orders from customers : Adam is a traveling salesperson for Peter Petri Plumbing Supply Corp. Adam has express authority to solicit orders from customers and to offer a 5 percent discount if payment is made within thirty days of delivery. Petri has said nothing to Adam abou..

User Account

All Pages