Question: Management is trying to decide whether Part A , which is produced with a consistent 3 percent defective rate, should be inspected. If it is
Management is trying to decide whether Part A which is produced with a consistent percent defective rate, should be inspected. If it is not inspected, the percent defectives will go through a product assembly phase and have to be replaced later. If all Part As are inspected, onethird of the defectives will be found, thus raising the quality to percent defectives.
A Should the inspection be done if the cost of inspecting is $ per unit and
B Suppose the cost of inspecting is $$ per unit rather than $ Would this change your answer in A
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