Homework Help is Here – Start Your Trial Now!
Business
Operations Management
A company packages a bulk product in bags with a 50-pound label weight. During a typical day's operation of the fill process, 22 subgroups of five bag fills are observed. Using the observed data, and Rare calculated to be 52.9364 pounds and 1.6818 pounds, respectively. When the 22 's and 22 R's are plotted with respect to the appropriate control limits, the first 6 subgroups are found to be out of control. We found that the elimination of a start-up problem brought the filling process into statistical control with=50.5875 and R=1.2937. (a) Recalling that the fill weight and R charts are based on subgroups of size 5, and assuming that the fill weights are approximately normally distributed, calculate the natural tolerance limits for the process. (Round your answers to 4 decimal places.) Natural tolarence limits are [ 51.9886 (b) Suppose that management wishes to reduce the mean fill weight in order to save money by "giving away" less product. However, since customers expect each bag to contain at least 50 pounds of product, management wishes to leave some process leeway. Therefore, after the mean fill weight is reduced, the lower natural tolerance limit is to be no less than 48.6 lb. Based on the natural tolerance limits, how much can the mean fill weight be reduced? If the product costs $5 per pound, and if 1 million bags are sold per year, what is the yearly cost reduction achieved by lowering the mean fill weight? (Round mean answer to 4 decimal places.) The mean fill weight can be reduced by Annual cost reduction pounds

A company packages a bulk product in bags with a 50-pound label weight. During a typical day's operation of the fill process, 22 subgroups of five bag fills are observed. Using the observed data, and Rare calculated to be 52.9364 pounds and 1.6818 pounds, respectively. When the 22 's and 22 R's are plotted with respect to the appropriate control limits, the first 6 subgroups are found to be out of control. We found that the elimination of a start-up problem brought the filling process into statistical control with=50.5875 and R=1.2937. (a) Recalling that the fill weight and R charts are based on subgroups of size 5, and assuming that the fill weights are approximately normally distributed, calculate the natural tolerance limits for the process. (Round your answers to 4 decimal places.) Natural tolarence limits are [ 51.9886 (b) Suppose that management wishes to reduce the mean fill weight in order to save money by "giving away" less product. However, since customers expect each bag to contain at least 50 pounds of product, management wishes to leave some process leeway. Therefore, after the mean fill weight is reduced, the lower natural tolerance limit is to be no less than 48.6 lb. Based on the natural tolerance limits, how much can the mean fill weight be reduced? If the product costs $5 per pound, and if 1 million bags are sold per year, what is the yearly cost reduction achieved by lowering the mean fill weight? (Round mean answer to 4 decimal places.) The mean fill weight can be reduced by Annual cost reduction pounds

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
J 1
A company packages a bulk product in bags with a 50-pound label weight. During a typical day's operation of the fill process, 22 subgroups of five bag fills are observed. Using the observed data, and Rare calculated to be 52.9364 pounds and 1.6818 pounds, respectively. When the 22 's and 22 R's are plotted with respect to the appropriate control limits, the first 6 subgroups are found to be out of control. We found that the elimination of a start-up problem brought the filling process into statistical control with=50.5875 and R=1.2937. (a) Recalling that the fill weight and R charts are based on subgroups of size 5, and assuming that the fill weights are approximately normally distributed, calculate the natural tolerance limits for the process. (Round your answers to 4 decimal places.) Natural tolarence limits are [ 51.9886 (b) Suppose that management wishes to reduce the mean fill weight in order to save money by "giving away" less product. However, since customers expect each bag to contain at least 50 pounds of product, management wishes to leave some process leeway. Therefore, after the mean fill weight is reduced, the lower natural tolerance limit is to be no less than 48.6 lb. Based on the natural tolerance limits, how much can the mean fill weight be reduced? If the product costs $5 per pound, and if 1 million bags are sold per year, what is the yearly cost reduction achieved by lowering the mean fill weight? (Round mean answer to 4 decimal places.) The mean fill weight can be reduced by Annual cost reduction pounds
Transcribed Image Text:A company packages a bulk product in bags with a 50-pound label weight. During a typical day's operation of the fill process, 22 subgroups of five bag fills are observed. Using the observed data, and Rare calculated to be 52.9364 pounds and 1.6818 pounds, respectively. When the 22 's and 22 R's are plotted with respect to the appropriate control limits, the first 6 subgroups are found to be out of control. We found that the elimination of a start-up problem brought the filling process into statistical control with=50.5875 and R=1.2937. (a) Recalling that the fill weight and R charts are based on subgroups of size 5, and assuming that the fill weights are approximately normally distributed, calculate the natural tolerance limits for the process. (Round your answers to 4 decimal places.) Natural tolarence limits are [ 51.9886 (b) Suppose that management wishes to reduce the mean fill weight in order to save money by "giving away" less product. However, since customers expect each bag to contain at least 50 pounds of product, management wishes to leave some process leeway. Therefore, after the mean fill weight is reduced, the lower natural tolerance limit is to be no less than 48.6 lb. Based on the natural tolerance limits, how much can the mean fill weight be reduced? If the product costs $5 per pound, and if 1 million bags are sold per year, what is the yearly cost reduction achieved by lowering the mean fill weight? (Round mean answer to 4 decimal places.) The mean fill weight can be reduced by Annual cost reduction pounds
Expert Solution
steps

Step by step

Solved in 4 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS