An automatic machine is used to fill cans with coffee. The nominal weight of each can is 16.0 oz. The standard deviation of the fill weight is known to be 0.10 oz. Cans are automatically inspected, and all underfilled cans are rejected. The selling price of a can of coffee is $3. Underfilled cans can be sold for $1.75. The cost of the coffee $0.10 per ounce. Determine the optimum mean target level for the filling machine

An automatic machine is used to fill cans with coffee. The nominal weight of each can is 16.0 oz. The standard deviation of the fill weight is known to be 0.10 oz. Cans are automatically inspected, and all underfilled cans are rejected. The selling price of a can of coffee is $3. Underfilled cans can be sold for $1.75. The cost of the coffee $0.10 per ounce. Determine the optimum mean target level for the filling machine

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.2: Elements Of Decision Analysis

Problem 2P

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