Question: This window shows your responses and what was marked correct and incorrect from your previous attempt 9. Award 1 out of 200 points Problem 10-17

This window shows your responses and what was

This window shows your responses and what was marked correct and incorrect from your previous attempt 9. Award 1 out of 200 points Problem 10-17 A company currently using an inspection process in its material receiving department is trying to install an overal cost reduction program. One possible reduction is the elimination of one inspection position. This position tests tems for which the probability of a material Defect averages D.04. By insarcting all items, the insactor is able to remove all efects. The inspector can insect 50 units per hour. The hourly rate including fringe benefits for this position is $9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $10 each when they are detected in final product testing Assume that the line will operate at the same rate (.e., the inspection rale) if the inspection operation was eliminated. A-1. If the inspector position is eliminated, what will the hourly cost of detects be? Cost per hour a-2. Should this inspection position be eliminated based on costs alona? DY NO b. What is the cost to inspect each unit? (Round your answer to 2 decimal places.) Cost per unit $ 200 C. Is there benefit (ar lass) from the current inspection process? How much? (Input all amounts positive values. Round "per unit" value to 2 decimal places. Hourly Berelt $4.81 Hints References eBook & Resources Hint #1 Previous attempt

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