a-1. Without the inspector, what is the current hourly cost of defects? Note: Round your answer to 2 decimal places. a-2. Should an inspection station be established to test all units based on costs alone? a-3. If the inspection operation is added, what would be the cost to inspect each unit? Note: Round your answer to 2 decimal places.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

69 

Output from a process contains 0.02 defective unit. Defective units that go undetected into final assemblies cost $25 each to replac An inspection process, which would detect and remove all defectives, can be established to test these units. However, the inspector, who can test 22 units per hour, is paid $10 per hour, including fringe benefits. Should an inspection station be established to test all units? ume that the line will operate at the same rate (i.e., the current production rate) regardless of whether or not the inspection ration is added. 
a-1. Without the inspector, what is the current hourly cost of defects?

Note: Round your answer to 2 decimal places.

a-2. Should an inspection station be established to test all units based on costs alone?

a-3. If the inspection operation is added, what would be the cost to inspect each unit?

Note: Round your answer to 2 decimal places.

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Quality Process Control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.