Question: In Exercise 9-22, suppose that the specifications for the gap are 1.05 0.15 cm. An assembly with a gap exceeding the upper specification limit is

In Exercise 9-22, suppose that the specifications for the gap are 1.05 ±0.15 cm. An assembly with a gap exceeding the upper specification limit is scrapped, whereas that with a gap less than the lower specification limit can be reworked to increase the gap dimension. The unit cost of rework is $0.15 and that for scrap is $0.40. If the daily production rate is 2000, calculate the daily total cost of scrap and rework. How can this cost be reduced?

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