a-1. If the inspector position is eliminated, what will the hourly cost of defects be? Note: Round your answer to 2 decimal places. a-2. Should this inspection position be eliminated based on costs alone? b. What is the cost to inspect each unit? Note: Round your answer to 2 decimal places.
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A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has a defective content on the average of 0.02. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 53 units per hour.
The hourly rate including
a-1. If the inspector position is eliminated, what will the hourly cost of defects be?
Note: Round your answer to 2 decimal places.
a-2. Should this inspection position be eliminated based on costs alone?
b. What is the cost to inspect each unit?
Note: Round your answer to 2 decimal places.
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