This exercise illustrates that poor quality can affect schedules and costs. A manufacturing process has 100 customer orders to fill. Each order requires one component part that is pur from a supplier. However, typically, 2% of the components are identified as defective, and components can be assumed to be independent. 100

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This exercise illustrates that poor quality can affect schedules and costs. A manufacturing
process has 100 customer orders to fill. Each order requires one component part that is purchased
from a supplier. However, typically, 2% of the components are identified as defective, and the
components can be assumed to be independent.
If the manufacturer stocks 100 components, what is the probability that the 100 customer orders
can be filled, and all will be non-defective?
O a. 1.268 x 10-170
O b. 1.0000
O c. 0.1326
O d. NONE
Transcribed Image Text:This exercise illustrates that poor quality can affect schedules and costs. A manufacturing process has 100 customer orders to fill. Each order requires one component part that is purchased from a supplier. However, typically, 2% of the components are identified as defective, and the components can be assumed to be independent. If the manufacturer stocks 100 components, what is the probability that the 100 customer orders can be filled, and all will be non-defective? O a. 1.268 x 10-170 O b. 1.0000 O c. 0.1326 O d. NONE
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