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A foundry receives an order for specialty castings. Cost of producing each casting is estimated to be $15,000. The customer requires that exactly 4 good castings be supplied. The customer will pay $20,000 for each good casting. If fewer than four good castings are available, none will be purchased. Each casting is produced independently and the probability of an individual casting being acceptable to the customer is .80. 1/ Develop the expected profit function to be maximized? 2/ Determine the production lot size that maximizes expected profit? 3/ Determine the lot size that will yield a probability of .90 of producing at least 4 good castings. What is the expected profit for the lot size obtained?
It is generally unnecessary to have every single function represented on the core team of the project as that would make the team large than necessary and difficult to communicate
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Briefly discuss benchmarking as process improvement tool. Explain six types of benchmarking and give four reasons why some businesses have failed to derive maximum benefit from it.
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