Question: A computer company is having problems with the hard drive for its computer. A particular part fails about 2 per cent of the time. It

A computer company is having problems with the hard drive for its computer.

A particular part fails about 2 per cent of the time. It costs 200 each time to replace the part and to deal with customer dissatisfaction.

The company could redesign the computer and leave out the part for 50,000, or perform extensive inspections on the part that would cost 2 per computer.

What should the company do, if it plans to make 30,000 computers during the coming year, before the computer becomes obsolete?

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