Question: 2 . 9 . The total processing cost for producing the X - Pacer running shoe in Problem 2 . 5 is $ 1 8

2.9. The total processing cost for producing the X-Pacer running shoe in Problem 2.5 is $18. The Omega Shoe Company starts production of 650 pairs of the shoes weekly, and the average weekly yield is 90%, with 10% defective shoes. One quarter of the defective shoes can be reworked at a cost of $3.75.
Compute the qualityproductivity ratio (QPR).
Answer
5.11
Compute the QPR if the production rate is increased to 800 pairs of shoes per week.
Answer
5.11
Compute the QPR if the processing cost in part a. is reduced to $16.50 and the rework cost to $3.20.
Answer
5.58
Compute the QPR if the product yield in part a. is increased to 93% good quality.
Answer
5.24
2.10. Airphone, Inc., manufactures cellular telephones at a processing cost of $47 per unit. The company produces an average of 250 phones per week and has a yield of 87% good-quality phones, resulting in 13% defective phones, all of which can be reworked. The cost of reworking a defective telephone is $16.
Compute the qualityproductivity ratio (QPR).
Compute the QPR if the company increased the production rate to 320 phones per week while reducing the processing cost to $42, reducing the rework cost to $12 and increasing the product yield of good-quality telephones to 94%.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!