A department store in Beijing, China, has arranged to purchase specially-designed sweatshirts from a clothing manufacturer in

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A department store in Beijing, China, has arranged to purchase specially-designed sweatshirts from a clothing manufacturer in Hong Kong. When the sweatshirts arrive in Beijing in lots of 2000 units, they are inspected. The store’s management and manufacturer have agreed on quality criteria of AQL = 2% defective and LTPD = 8% defective. Because sending poor-quality shipments back to Hong Kong would disrupt sales at the stores, management has specified a low producer’s risk of 0.01 and will accept a relatively high consumer’s risk of 0.10. Using OM Tools, develop a sampling plan that will achieve these quality-performance criteria.

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Operations Management Creating Value Along the Supply Chain

ISBN: 978-1118301173

1st Canadian Edition

Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi

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