A car manufacturer supplies brake pads from two main suppliers. Historical quality information indicates that for Supplier

Question:

A car manufacturer supplies brake pads from two main suppliers. Historical quality information indicates that for Supplier 1, there is a 65% probability that a given lot would contain 3% defects, 25% portability that a given lot would contain 2% defects, and a 10% probability that a given lot would contain 1% defects. As for Supplier 2, there is a 15% probability that a given lot would contain 3% defects, 35% portability that a given lot would contain 2% defects, and a 50% probability that a given lot would contain 1% defects. The cost per pad from supplier 1 is $32 while the cost per pad from supplier 2 is $38.

If the company is about to place an order for 20,000 pads, use decision trees to decide on which supplier to select.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: