Question: You are the manager for the NMSU ice cream processing plant, the ice cream churning process needs to be 1000 mg per batch, and your

You are the manager for the NMSU ice cream processing plant, the ice cream churning process needs to be 1000 mg per batch, and your customer will accept +/- 10mg. Your loss if the batch is rejected is $10. You currently produce 3,000 batches a month. The current process makes them approximately 1008 mg.

You have a project that will cost $40,000, and will reduce the product to 1003 mm long. As your product is currently being accepted by the customer, management is reluctant to accept the project should you do it?

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