Problem 13-4 (Algo) There is a 3 percent error rate at a specific point in a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 13-4 (Algo) There is a 3 percent error rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be detected and eliminated. The inspector would cost $9 per hour and could inspect units in the process at the current production rate of 50 per hour. no inspector is hired and defects are allowed to pass this point, there is a cost of $10 per defective unit to correct the defects later on. Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not. a. If an inspector is hired, what will be the inspection cost per unit? (Round your answer to 3 decimal places.) Cost per unit b. If an inspector is not hired, what will be the defective cost per unit? (Round your answer to 3 decimal places.) Cost per unit c. Should an inspector be hired based on costs alone? Yes O No Problem 13-4 (Algo) There is a 3 percent error rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be detected and eliminated. The inspector would cost $9 per hour and could inspect units in the process at the current production rate of 50 per hour. no inspector is hired and defects are allowed to pass this point, there is a cost of $10 per defective unit to correct the defects later on. Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not. a. If an inspector is hired, what will be the inspection cost per unit? (Round your answer to 3 decimal places.) Cost per unit b. If an inspector is not hired, what will be the defective cost per unit? (Round your answer to 3 decimal places.) Cost per unit c. Should an inspector be hired based on costs alone? Yes O No
Expert Answer:
Answer rating: 100% (QA)
Lets break down the information provided and calculate the costs for both scenarios a If an inspecto... View the full answer
Related Book For
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase
Posted Date:
Students also viewed these general management questions
-
There is a 3 percent error rate at a specific point in a production process. If an inspector is placed at this point, all the errors can be detected and eliminated. However, the inspector is paid $ 8...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
An interior room is maintained at an air temperature of 210C by a radiant panel covering one of the room walls, calculate the temperature of the radiant panel necessary to achieve the thermal comfort...
-
Why doesn't a transformer work with direct current? Why is ac required?
-
What disclosures should an entity make in the notes to the financial statement in respect of each material category of non-adjusting event after the reporting period?
-
The function of the surface condenser is to (a) lower the engine thermal efficiency (b) increase the engine thermal efficiency (c) increase the black pressure of the engine (d) cool the exhaust gases
-
Ballard Company rents a warehouse on a month-to-month basis for the storage of its excess inventory. The company periodically must rent space whenever its production greatly exceeds actual sales. For...
-
How would you facilitate your own town hall meeting if you were an administrator at Francis Howell School?
-
The rate of change of the volume of a snowball that is melting is proportional to the surface area of the snowball. Suppose the snowball is perfectly spherical. The volume (in centimeters cubed) of a...
-
QUESTION 9 Jaz was having a tough day at work. A teacher called in the morning to inform her that her son wasn't keeping up with his homework. She also kept slipping up during her presentation and...
-
Write the equation of a smooth transition regression (STR) model by explaining the meaning of all notations. Explain the difference between a LSTR and a ESTR in terms of transition. Give an example...
-
MARKETING GOALS & OBJECTIVES In detail explain, what are the Year 1 and Year 3 marketing goals and SMART objectives that support the Business Goals & SMART objectives? Consider what you are trying to...
-
2. Let us assume that the economy experiences a high inflation rate and severe tightness in the labor market. Given the observed small value of II', what type of policy (monetary, fiscal, ...) would...
-
5. A film is prepared by using 8 g of a material of molecular mass 854 amu. It is compressed to a minimal area of 18.5 cm. What is the cross sectional area of the molecule if it is considered to be...
-
MHF 400 Polynomial Functions: Thinking Task Provide full algebraic solutions for any TWO questions. 1. Determine the equation for a cubic function that has the following characteristics: End...
-
Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A (by letter) with the item from List B that is...
-
What are the two main competitive dimensions related to product delivery?
-
Bindley Corporation has a one- year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York, Fort...
-
How do you determine the idle-time percentage from a given assembly-line balance?
-
What are the numbers of observations in each of the five categories that rate the respondents level of job satisfaction?
-
Which of the seven store departments had the most customer visits, and what was this number?
-
What proportion of the 26,280 individuals are in each of the five categories?
Study smarter with the SolutionInn App