A processing sequence consists of 10 operations, each of which is followed by an inspection and sortation operation to detect and remove defects generated in the processing operation. Defects in each process occur at a rate of q = 0.04. Each processing operation costs $1.00 per unit processed, and the inspection/sortation operation costs $0.30 per unit.
(a) Determine the total processing and inspection costs for this distributed inspection system.
(b) A proposal is being considered to combine all of the inspections into one final inspection and sortation station following the last processing operation. Determine the cost per unit of this final inspection and sortation station that would make the total cost of this system equal to that of the distributed inspection system.