
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.

Answer to Problem 61AP
The producers risk
The consumers risk
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
Manufacturer A supplies the chips in the lot size of 100
10 percent of chips in a lot of 100 is the
A lot is rejected if the number of defects
The hypothesis of the test is
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
Consider
The producers risk
Now, calculate the consumers risk
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
Consider
The consumers risk
The consumer risk is more than the producer risk for manufacturer A.
The producers risk
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
The hypothesis of the test is
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
Consider
The producers risk
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
Consider
The consumers risk
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
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
Consider
The producers risk
Now, calculate the consumers risk
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
Consider
The consumers risk
Want to see more full solutions like this?
Chapter 12 Solutions
EBK PRODUCTION AND OPERATIONS ANALYSIS
- 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 $2,500 B C $2,100 $1,050 $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).arrow_forwardThe importance of keeping track of invoices and budgeting in a nursing home kitchen and how can a nutritionist utilize this in their career? Please not just a short explanation.arrow_forwardThe importance of interviewing potential food service aides and how can a nutritionist utilize this in their career? Please not just a short explanation.arrow_forward
- What role does job analysis and job evaluation play in the compensation decision? Give an example of an organization NO AIarrow_forwardI did the first half correct! Please help me with the second half, not quite sure of the naive approach. Thanks in advance!arrow_forwardBecause my tutor and I didnt get it rightarrow_forward
- Operations Managementarrow_forwardHow does wellness reflect and impact the past and the future of our health as a workout routine? What are the obstacles during the workout routine, and how do you overcome the obstacles? What are the best solutions to plan and accomplish the wellness?arrow_forwardMy last question! Thank you all for helping me better understand how OM works. If you can assist me for this one I'd be very thankful. Can you explain it step by step?I know now that LS is late start, and ES is early start. - •Activities on the critical path are? •The total project completion time for Rafay Ishfaq's software firm is how many weeks?•Determine the slack time for each of the activities for A-F •What is the total slack for the non critical paths in Rafays project?arrow_forward
- Thank you so much! I was able to answer C without help! Can you assist me with slack time for A-F? I believe A=0arrow_forwardThere's 8 parts, but I need some help with them. I always get confused on which is most critical of a patharrow_forwardMenu Item Sales and Cost Data Taco Salad: Number Sold: 127; Item Cost: $0.71; Selling Price: $3.25 Lasagna: Number Sold: 48; Item Cost: $0.92; Selling Price: $4.67 Chicken: Number Sold: 31; Item Cost: $1.20; Selling Price: $3.00 Green Beans: Number Sold: 14; Item Cost: $0.20; Selling Price: $1.00 Corn: Number Sold: 13; Item Cost: $0.24; Selling Price: $1.00 Rice: Number Sold: 9;Item Cost: $0.13; Selling Price: $1.00 Menu Item Classification: Low contribution margin, low menu mix % DOG High contribution margin, low menu mix % PUZZLE Low contribution margin, high menu mix % PLOWHORSE High contribution margin, high menu mix o/o STAR QUESTION 1 Complete the menu analyses worksheet below. Calculations will be done using the information above. Restaurant: Date: MealPeriod: (A) ☐ (B) (C) (D) (E) (F) (G) (H) (1) (J) Menu Mix Popularity % Item Item Sold/(Menu Mix Menu Menu Item Food Menu Contribution Contribution Contribution Category Item Mix %): (B/K) Cost Selling Margin Price Margin (E-D)…arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
