During your design of a product, Taguchi loss equation is used to understand financial loss due to
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Question:
During your design of a product, Taguchi loss equation is used to understand financial loss due to deviation from your target specification. Your target specification is 25 mm where deviation range is + or - 1mm. At boundary values of deviations, it costs you about $100 for each repair. Find out the value of k and estimate the value of financial loss when you deviate 0.5mm from your target value.
k=100, L(0.5mm) = $25.
k=50, L(0.5mm) = $12.5.
k=65, L(0.5mm) = $65.
k=1, L(0.5mm) = $0.25.
k=25, L(0.5mm) = $6.25.
Related Book For
Advanced Financial Accounting
ISBN: 978-0132928939
7th edition
Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay
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