Question: 58 X IPS has collected the fixed-cost and variable 00 D E F G H J 1 3 Problem 1 (40 points) Organic Grains LLC

58 X IPS has collected the fixed-cost and
58 X IPS has collected the fixed-cost and
58 X IPS has collected the fixed-cost and
58 X IPS has collected the fixed-cost and variable 00 D E F G H J 1 3 Problem 1 (40 points) Organic Grains LLC uses the statistical process control to ensure that its health-conscious, low-fat, multigrain sandwich loaves have 16 oz. The following table shows the weight of the loaves selected randomly each hour for 9 hours. 0 Weight of Loaves 12 Hour 1 2 3 4 5 6 1 16 17 16 18 17 14 2. 16 14 15 17 18 16 15 3 15 16 15 14 17 15 16 4 16 17 17 16 16 17 17 5 17 17 16 15 15 18 6 16 16 15 14 15 14 7 17 16 18 16 17 15 20 15 17 16 17 15 16 9 17 14 16 -16 15 14 22 14 18 19 21 23 24 Q1. Compute the value of 3 sigma. 25 26 Q2 Determine the UCL and LCL of Xbar chart 27 28 Q3. Determine the UCL and LCL of R chart 29 30 Problem 2 (30 points) The intensive care unit lab process has an average turnaround time of 32.8 minutes and a standard deviation of 1.8 minutes. Tre normal value for this service should be 32 minutes + 4 minutes. The administrator of the lab wants to find if the lab process is capable by applying the process capability index. Cpk = min [(Xbar - LTL)/3s, (UTL - Xbar) 3s ] B 5 Q1 Compute the process capability index (Cpk). Q2 7 3 If the average tumaround time is on the target value, what is the standrad deviation to meet the six sigma standard (process capability index=2)? 9 0 1 2 D Problem 3 (30 points) Industrial Packaging Solutions (IPS) is a manufacturer of corrugated fireboard shipping boxes used by companies across the United States. IPS is considering an additional plant in each of two cities to be selected among the following cities. IPS has illlected the fixed-cost and variable-cost data. The demand in each of the following cities is assumed to be unformly 42,000 units per year. 2 cost per 1 per unit cost fixed variable 2 location year materials labor overhead $ Atlanta, GA $0.60 $0.80 $0.40 - Baltimore, MD $0.85 $0.75 $0.75 5 Chicago, IL $0.40 $0.40 $1.00 6 Denver, CO S0.40 $0.30 S0.40 -7 Indianapolis, IN $0.50 $1.20 $0.80 58 Kansas, MO $0.40 $0.80 $0.20 59 Los Angeles, CA $0.20 $0.70 $1.00 O Minneapolis, MN $0.30 $0.30 $0.30 91 New York, NY $0.60 $0.80 S0.40 #2 Orlando, FL $0.20 $0.50 $0.50 73 74 Assume that the unit price is $22 75 Q1. Select the best city in terms of the annual profit and show the annual profit. 77 78 Q2. Select the second best city and show the annual profit. 79 1 76

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