What is the average savings in total inspection costs

Reference no: EM131389940

In the construction industry, the initial inspection of tie beams is estimated to cost $0.20 per unit. If, however, a nonconforming beam is allowed for construction purposes, the unit cost of rectifying and replacing it is $50.

What inspection policy should be followed, using Deming's kp rule, if the nonconformance rate of beams is 0.5%? What is the average savings in total inspection costs if 100% inspection is used as opposed to no inspection?

Reference no: EM131389940

Questions Cloud

Producing output at potential level and inflation rate : Over stimulating the economy: Suppose the economy today is producing output at its potential level and the inflation rate is equal to its long-run level, with --2%. What happens if policymakers try to stimulate the economy to keep output above potent..

Using demings kp rule what inspection policy should be used : The estimated proportion nonconforming of the transmission systems is 0.003. Using Deming's kp rule, what inspection policy should be used?

Calculate the value of its acceleration : A 0.460-kg object attached to a spring with a force constant of 8.00 N/m vibrates in simple harmonic motion with an amplitude of 13.0cm. (Assume the position of the object is at the origin at t= 0.) a) Calculate the value of its acceleration when ..

Demand function for particular beverage : Find the? consumers' surplus if the demand function for a particular beverage is given by D(q)= 3000/(3q+8)^2 and if the supply and demand are in equalibrium at q=7. What would be the consumer surplus?

What is the average savings in total inspection costs : What inspection policy should be followed, using Deming's kp rule, if the nonconformance rate of beams is 0.5%? What is the average savings in total inspection costs if 100% inspection is used as opposed to no inspection?

Is the crash related to the depression that followed and how : Why did the October 1929 Stock Market Crash happen? (Crashes have happened before and afterwards). Why is 1929 so important and studied? Is the crash related to the depression that followed and how?

Find the parameters of a variable sampling plan : Also, batches that have a mean of 1 standard deviation below the upper specification should be accepted no more than 8% of the time. Find the parameters of a variable sampling plan and describe its operation.

Find the parameters of a variable sampling plan : Lots with a mean such that 8% of the product is nonconforming should be accepted 7% of the time. Find the parameters of a variable sampling plan and describe its operation.

Prepare memo that address advantage external staffing method : Prepare a memo in which you address the advantages and disadvantages of both internal and external staffing methods of a new office that is remote from the main office.

User Account

All Pages