Suppose that the prevention and appraisal cost functions are given by Cp - 50q2 and Ca =

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Suppose that the prevention and appraisal cost functions are given by Cp - 50q2 and Ca = 10(7, respectively, where q represents the degree of quality level (0 < q < 1). The cost of reworking a unit is $5, and the cost of a customer obtaining a nonconforming product is $85. Assume that these cost functions are linear in (1 - q). What is the desirable operational level of quality for this static situation? Discuss the appropriateness of the cost functions.
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