Q3

Studies on a machine that molds plastic water pipe indicate that when it is injecting 28.31 mm diameter pipe, the process standard deviation is 0.33 mm. The pipe has a specification of 28.31 mm plus or minus 2.24 mm. What is the process capability index (Cp)?

a.

4.525

b.

1.131

c.

6.788

d.

2.263

Clear my choice

Q4

The operator of a concession at a downtown location estimates that he will sell 420 bags of circus peanuts during a month. Holding costs (annual) are 43 percent of unit price and ordering cost is $12. The price schedule for bags of peanuts is : 1 to 199, $2.5 each; 200 to 499, $2.48 each; and 500 or more $2.42 each. What order size would be most economical ?

a.

436

b.

126

c.

126

d.

99