Your quality control manager has identified the four major problems, the extent to which each one occurs
Question:
a. Compute the expected rework cost for each problem separately. For example, the expected rework cost for broken case is 0.04 Ã 6.88. Compare the results and indicate the most serious problem in terms of expected dollar costs.
b. Find the overall expected rework cost due to all four problems together.
c. Find the standard deviation of rework cost (dont forget the nonreworked items).
d. Write a brief memo, as if to your supervisor, describing and analyzing the situation.
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