Please answer c c. Is there benefit (or loss) from the current inspection process? How much?answers to 2 decimal places.)HourlyPer unit A company currently using an inspection process in its material receiving department is trying to install an overall cost reductionprogram. One possible reduction is the elimination of one inspection position. This position tests items for which the probability of amaterial defect averages 0.01. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 55 unitsper hour. The hourly rate including fringe benefits for this position is $10. If the inspection position is eliminated, defects will go intoproduct assembly and will have to be replaced later at a cost of $11 each when they are detected in final product testing.Assume that the line will operate at the same rate (i.e., the inspection rate) if the inspection operation was eliminated.

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Answered: c. Is there benefit (or loss) from the…

c. Is there benefit (or loss) from the current inspection process? How much? answers to 2 decimal places.) Hourly Per unit

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...

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