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In the past, Alpha Corporation has not performed incoming quality control inspections but has taken the word of its vendors. However, Alpha has been having some unsatisfactory experience recently with the quality of purchased items and wants to set up sampling plans for the receiving department to use. For a particular component, X, Alpha has a lot tolerance percentage defective of 40 percent. Zenon Corporation, from which Alpha purchases this component, has an acceptable quality level in its production facility of 15 percent for component X. Alpha has a consumer's risk of 10 percent and Zenon has a producer's risk of 5 percent. a. When a shipment of Product X is received from Zenon Corporation, what sample size should the receiving department test? Use Exhibit 10.16. Note: if the exact value of the computed LTPD/AOQ ratio does not appear in Exhibit 10.16, use the next higher ratio. (Round up your answer to the next whole number.) Sample size

In the past, Alpha Corporation has not performed incoming quality control inspections but has taken the word of its vendors. However, Alpha has been having some unsatisfactory experience recently with the quality of purchased items and wants to set up sampling plans for the receiving department to use. For a particular component, X, Alpha has a lot tolerance percentage defective of 40 percent. Zenon Corporation, from which Alpha purchases this component, has an acceptable quality level in its production facility of 15 percent for component X. Alpha has a consumer's risk of 10 percent and Zenon has a producer's risk of 5 percent. a. When a shipment of Product X is received from Zenon Corporation, what sample size should the receiving department test? Use Exhibit 10.16. Note: if the exact value of the computed LTPD/AOQ ratio does not appear in Exhibit 10.16, use the next higher ratio. (Round up your answer to the next whole number.) Sample size

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In the past, Alpha Corporation has not performed incoming quality control inspections but has taken the word of its vendors. However, Alpha has been having some unsatisfactory experience recently with the quality of purchased items and wants to set up sampling plans for the receiving department to use. For a particular component, X, Alpha has a lot tolerance percentage defective of 40 percent. Zenon Corporation, from which Alpha purchases this component, has an acceptable quality level in its production facility of 15 percent for component X. Alpha has a consumer's risk of 10 percent and Zenon has a producer's risk of 5 percent. a. When a shipment of Product X is received from Zenon Corporation, what sample size should the receiving department test? Use Exhibit 10.16. Note: if the exact value of the computed LTPD/AOQ ratio does not appear in Exhibit 10.16, use the next higher ratio. (Round up your answer to the next whole number.) Sample size b. What is the allowable number of defects in order to accept the shipment?
Transcribed Image Text:In the past, Alpha Corporation has not performed incoming quality control inspections but has taken the word of its vendors. However, Alpha has been having some unsatisfactory experience recently with the quality of purchased items and wants to set up sampling plans for the receiving department to use. For a particular component, X, Alpha has a lot tolerance percentage defective of 40 percent. Zenon Corporation, from which Alpha purchases this component, has an acceptable quality level in its production facility of 15 percent for component X. Alpha has a consumer's risk of 10 percent and Zenon has a producer's risk of 5 percent. a. When a shipment of Product X is received from Zenon Corporation, what sample size should the receiving department test? Use Exhibit 10.16. Note: if the exact value of the computed LTPD/AOQ ratio does not appear in Exhibit 10.16, use the next higher ratio. (Round up your answer to the next whole number.) Sample size b. What is the allowable number of defects in order to accept the shipment?
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