National Cookie Company produces premium chocolate chip cookies for sale in up-scale food markets. Cookies are sold in 250 gram packages of 10 cookies. Unfortunately, the manufacturing process has some inherent variation. After years of improving the process, National has reduced the standard deviation of the process to 0.6 grams per cookie. In the short term, the variation of 2 the production process is outside National’s control. However, National is able to adjust the mean weight level for each cookie. For various economic reasons, setting the mean level properly is important. If it is too high, then the cookies are heavier than required and National must incur unnecessarily high raw material costs; if the mean level is too low, then the cookies must be sold as thrift. a) Assume that National sets the maximum number of underweight packages at 2.5%. Where should National set the mean weight level per cookie?
National Cookie Company produces premium chocolate chip cookies for sale in up-scale food
markets. Cookies are sold in 250 gram packages of 10 cookies. Unfortunately, the manufacturing
process has some inherent variation. After years of improving the process, National has reduced
the standard deviation of the process to 0.6 grams per cookie. In the short term, the variation of
2
the production process is outside National’s control. However, National is able to adjust the
properly is important. If it is too high, then the cookies are heavier than required and National
must incur unnecessarily high raw material costs; if the mean level is too low, then the cookies
must be sold as thrift.
a) Assume that National sets the maximum number of underweight packages at 2.5%. Where
should National set the mean weight level per cookie?
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