Question: You currently work as Supply Chain Manager with responsibility for Production at ABC Corporation, a world leader in the fabrication of high-strength construction steel rods.

 You currently work as Supply Chain Manager with responsibility for Productionat ABC Corporation, a world leader in the fabrication of high-strength construction

You currently work as Supply Chain Manager with responsibility for Production at ABC Corporation, a world leader in the fabrication of high-strength construction steel rods. The daily production at your facility is currently stable and 100% of the production is within acceptable limits for your current customers. The outside diameters of your products range between 15.340 and 18.819 . After you had finished today's production run, you were about to leave the office when a potential new customer contacted your company to inquire about a potential SPOT purchase of 100% of tomorrow's product run, but only if the outside diameter is within 17.400 and 18.000 . There is no time to make any changes to your equipment. You have explained to your potential new customer that at the end of tomorrow's run you will inform them if tomorrow's production run was within their required limits. Your Sales Director has asked you what is the probability that tomorrow's production run is within their required limits for you to make the sale. You have gathered information from the last 150 days of the daily production runs, including today's run to make this determination. You have plotted your data for visual reference against the potential customer's requirements. The required Lower Specification Limit is 17.400 and the required Upper Specification Limit is 18.000. \begin{tabular}{|l|l|} \hline Production & \multicolumn{2}{|l|}{ Outside } \\ Dia. \\ \hline Day 61 & 16.14 \\ \hline Day 62 & 15.37 \\ \hline Day 63 & 16.46 \\ \hline Day 64 & 16.10 \\ \hline Day 65 & 16.06 \\ \hline Day 66 & 16.61 \\ \hline Day 67 & 16.80 \\ \hline Day 68 & 18.16 \\ \hline Day 69 & 17.93 \\ \hline Day 70 & 18.23 \\ \hline Day 71 & 16.69 \\ \hline Day 72 & 16.32 \\ \hline Day 73 & 18.10 \\ \hline Day 74 & 16.82 \\ \hline Day 75 & 17.18 \\ \hline Day 76 & 17.59 \\ \hline Day 77 & 16.54 \\ \hline Day 78 & 16.70 \\ \hline Day 79 & 16.99 \\ \hline Day 80 & 16.46 \\ \hline Day 81 & 17.50 \\ \hline Day 82 & 16.50 \\ \hline Day 83 & 16.48 \\ \hline Day 84 & 17.29 \\ \hline Day 85 & 17.59 \\ \hline Day 86 & 16.25 \\ \hline Day 87 & 16.37 \\ \hline Day 88 & 18.26 \\ \hline Day 89 & 16.38 \\ \hline Day 90 & 17.58 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!