Question: 5 . In the quality control setup, the process mean is monitored by taking a sample of size n = 8 every half an hour

5. In the quality control setup, the process mean is monitored by taking a sample of
size n =8 every half an hour and stopping and adjusting the machine whenever X < c or
X > c +, where c\pm =0\pm b \sigma
n
. The cost of stopping and adjusting the machine is equal to
1500, and every hour of production after a shift of the process mean incurs a cost of 1000.
Assuming that mean shifts up or down from the standard in-control value by 1.5\sigma at random
moments once in 20 hours on average, find the value of the coefficient b minimizing the total
variable cost per unit time.

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!