b. Which of the two suppliers would you recommend to the factory? Provide the reasons behind your recommendation
A factory produces furniture as the main product. One of the major components of the furniture product is a steel bar with the specification of the length at 1,250 mm with +/- 10% tolerance. Based on historical records, the average demand for steel bars is 1,000 units per month. The factory receives two quotation prices from two independent suppliers along with the quality control records from their production process of the steel bars as below: (refer to table image)
Anticipating that a portion of the steel bars delivered will fall outside the specification limits, the factory is prepared to cut steel bars that are too long, while those that are too short will have to be discarded. Based on the above information, answer the following questions:
a. Provide your assessment on the capabilities (based on their capabilities index) of the two suppliers as well as their estimated percentage of defective products against the factory’s specification of the steel bars.
b. Which of the two suppliers would you recommend to the factory? Provide the reasons behind your recommendation
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