Question: Two inspection alternatives are to be compared for a processing sequence consisting of 20 operations performed on a batch of 100 starting parts: (1) one

Two inspection alternatives are to be compared for a processing sequence consisting of 20 operations performed on a batch of 100 starting parts: (1) one final inspection and sortation operation following the last processing operation, and (2) distributed inspection with an inspection and sortation operation after each processing operation. The cost of each processing operation Cpr = $1.00 per unit processed. The fraction defect rate at each operation q = 0.03. The cost of the single final inspection and sortation operation in alternative (1) is Csf = $2.00 per unit. The cost of each inspection and sortation operation in alternative (2) is Cs = $0.10 per unit. Compare total processing and inspection costs per batch for the two cases.

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