EBK PRODUCTION AND OPERATIONS ANALYSIS
EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 9781478628385
Author: Olsen
Publisher: WAVELAND PRESS (ECONTENT)
bartleby

Videos

Question
Book Icon
Chapter 12, Problem 61AP
Summary Introduction

Interpretation:Values of alpha and beta are to be determined.

Concept Introduction:Control charts are used to measure the effectiveness of the process determining the average value and control limits of the process. The Upper Control Limit (UCL) is the larger value and the Lower Control limit (LCL) is the smaller value of the sample. These limits gives a range to the data available.

Expert Solution & Answer
Check Mark

Answer to Problem 61AP

The producers risk α is 0.0862.

The consumers risk (β)is 0.583

Explanation of Solution

Given information:

The AQL and LTPD are 5 percent and 10 percent respectively.

A and B supply the product D to company N in the lot sizes of 100 and 1,000 respectively. 10 percent chips are selected at random and the lot is rejected if two or more defective chips are found.

First, calculate the producers risk (α) and (β) of manufacturer A as follows:

Manufacturer A supplies the chips in the lot size of 100

10 percent of chips in a lot of 100 is the sample size, n = 10

A lot is rejected if the number of defects X2 , p=pο and p=p1 .

The hypothesis of the test is

  pο Is Acceptable Quality Level (AQL) = 0.05

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 2

X is the number of defectives in the sample

n is the sample size of the first sample = 10

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (α) producers risk as follows:

  Xc1 , reject lot

  X2 reject lot or else accept

Consider p=pο=0.05

  α=1P{rejectlot|p=pο}

  α=1P{x2|p=0.05,n=10}

  α=1P{x1|p=0.05}

  α=1x=01(10x)(0.05)x(10.05)10x

  α=10.9138

  α=0.0862

The producers risk α is 0.0862.

Now, calculate the consumers risk (β)as follows:

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 2

X is the number of defectives in the sample

n is the sample size of the first sample = 10

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (β) as follows:

  Xc1 , accept lot

  X2 accepted lot or else reject

Consider p=p1=0.10

  β=P{x2|p=0.10}

  β=1P{x2|p=0.10,n=10}

  β=1x=01(100)(0.10)x(10.10)10x

  β=0.7361

The consumers risk (β) is 0.7381

The consumer risk is more than the producer risk for manufacturer A.

The producers risk (α)and consumers risk (β)for manufacturers A and B is calculated as follows:

Manufacturer A supplies the chips in the lot size of 1,000

10 percent of chips in a lot of 100 is the sample size, n = 100

A lot is rejected if the number of defects X2 , p=pο and p=p1 .

The hypothesis of the test is

  pο Is Acceptable Quality Level (AQL) = 0.05

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 2

X is the number of defectives in the sample

n is the sample size of the first sample = 100

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (α) producers risk as follows:

  Xc1 , reject lot

  X2 reject lot or else accept

Consider p=pο=0.05

  α=1P{rejectlot|p=pο}

  α=1P{x2|p=0.05,n=100}

  α={x1|θ=5}(poissondistributionapplication)

  α=1x=01e55x!

  α=10.0404

  α=0.9596

The producers risk (α)is 0.9596.Now, calculate the consumers risk (β)as follows:

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 2

X is the number of defectives in the sample

n is the sample size of the first sample = 100

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (β) as follows:

  Xc1 , accept lot

  X2 accepted lot or else reject

Consider p=p1=0.10

  β=P{x2|p=0.10}

  β=1P{x2|p=0.10,n=10}

  β=P[X£1|θ=10](poissondistributionapplication)

  β=x=01e1010xx!

  β=0.0005

The consumers risk (β) is0.0005.

The consumer risk is less than the producer risk for manufacturer B.

Reject the lot if more than 10 percent of the chips in a sample are defective.

Therefore, for manufacturer A, c = 1 and for manufacturer B, c = 10.

Manufacturer B is in a more advantageous position than A. The hypothesis of the test is

  pο Is Acceptable Quality Level (AQL) = 0.05

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 10

X is the number of defectives in the sample

n is the sample size of the first sample = 100

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (α) producers risk as follows:

  Xc1 , reject lot

  X2 reject lot or else accept

Consider p=pο=0.05

  α=1P{rejectlot|p=pο}

  α=1P{x10|p=0.05,n=100}

  α=1P{x10|p=0.05}

  α=0.0137

The producers risk (α) is 0.0137.

Now, calculate the consumers risk(β)as follows:

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 10

X is the number of defectives in the sample

n is the sample size of the first sample = 100

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (β) as follows:

  Xc1 , accept lot

  X2 accepted lot or else reject

Consider p=p1=0.10

  β=P{x10|p=0.10}

  β=P{x10|p=0.10,n=100}

  β=0.583

The consumers risk (β)is 0.583 Therefore, the consumer risk is more when the lot has more than 10 percent of the sample as defectives.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
The company LED S.A DE C.V. produces 2 devices for lamps, devices 1 and 2 that require metal parts and electrical parts. The manager wants to determine how many units of each product should be manufactured to maximize the profit for each unit, device 1 requires 2 metal parts and 4 electrical parts, device 2 requires 4 metal parts and 2 electrical parts, the company has 24 units of each material available for batch production, device 1 generates $4 profit and device 2 generates $6 profit. a) Formulate PL model. b) Solve by the graphical method and determine what is the resulting maximum profit. Translated with DeepL.com (free version)
Question 3 i. Using the Center of Gravity method, determine the optimal location (X, Y) for the new distribution center. [7 marks] [TOTAL 25 MARKS] Time (sec.) Power steering assembly firm wants to set up an assembly line which must have an output of 60 units per hour. The work elements, task times and their precedence relationships are shown in Table 2: Table 1 Work Element Immediate Predecessor(s) A 30 NONE B 26 A C 50 A D 44 B E 10 с F 20 с G 15 D.E H 30 E,G,F Required: a. Draw the precedence diagram showing the task precedence and their times b. Determine the cycle time associated with the rate of output required. [3 marks] c. What is the theoretical number of work stations required to satisfy this output rate? [3 marks] [4 marks] d. Allocate the tasks to work stations taking into consideration the precedence requirements and using the LOT rule to break ties between feasible tasks. e. Calculate the total idle time [8 marks] [3 marks] f. What is the efficiency of the line and the…
Hyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new electric car batteries. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Battery Produced A $11,000,000 $2,600 B C $2,000 $1,100 $20,000,000 $25,000,000 The firm knows it will produce between 0 and 60,000 batteries at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) The value of volume, V, of production above which site C is recommended = batteries (round your response up to the next whole number).
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Forecasting 2: Forecasting Types & Qualitative methods; Author: Adapala Academy & IES GS for Exams;https://www.youtube.com/watch?v=npWni9K6Z_g;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License