Question: Do not cooy from chegg show all steps please. a The HIT-AND-MISS MANUFACTURING COMPANY has received an order to supply one item of a particular

Do not cooy from chegg show all steps please.
Do not cooy from chegg show all steps please. a
a The HIT-AND-MISS MANUFACTURING COMPANY has received an order to supply one item of a particular type. However, the customer has specified such stringent quality requirements that the manufacture may have to produce more than one item to obtain an item that is acceptable. The number of extra items produced in a production run is called the rejection allowance. Including a reject allowance is common practice when producing for a custom order, and it seems advisable in this case. The manufacture estimates that each item of this type that is produced will be acceptable with probabilty and defective (without possibity for rework) with probability. Thus, the number of acceptable items produced in a lot of size L will have a binomial distribution; i.e., the probability of producing no acceptable items in such a lot is ()': Marginal production costs for this product are estimated to be $100 per item (even if defective), and excess items are worthless. In addition, a setup cost of $300 must be incurred whenever the production process is set up for this product, and a completely new setup at this same cost is required for each subseuqent production run if a lengthy inspection procedure reveals that a completed lot has not yielded an acceptable item. The manufacture has time to make no more than two production runs. If an acceptable item has not been obtained by the end of the second production run, the cost to the manufacture in lost sales income and penalty costs will be $1,200. The manufacture nees to choose a policy regarding the lost size (1+reject allowance) for the first production run and the next production run if an acceptable item has not yet been produced Use dynamic programming to determine the policy that minimizes the total expected cost (in the statistical sense) for the manufacture. Please show your steps (show your tables)

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