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$1$ Practice Problems

: Jun $27$ at $11$:$07$am

iz Instructions

Question $1$

$3$ pts

You are the operations manager for a small kayak and canoe manufacturer $($Valley Kayaks$)$ located in the Pacific Northwest $($Oregon$).$ Lately your company has experienced product quality problems. Simply put, the kayaks that you produce occasionally have defects and require rework. Consequently, you have decided to assess the impact of introducing a total quality management $($TQM$)$ program. After discussing the potential effects with representatives from marketing, finance, accounting, and quality, you arrive at a set of estimates $($contained in the following table$).$

$\backslash$table$[[,,$Estimated Impact of$],[$Category$,$Current Values,TQM$],[$Sales$,$$$2,000,000,5\%+($improvement$)],[$Cost of goods sold,$$1,500,000,0\%$