Decision impact the chip manufacturers sales and net profit

Reference no: EM131236736

A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufacturing, concerned about a possible loss of sales, assigns his production manager the task of ensuring that chips are produced to meet the specification of 1.2 cm.

Based on the production run from last month, a 95% confidence interval was computed for the mean length of a computer chip resulting in:

95% confidence interval: (0.9 cm, 1.1 cm)

What are the elements that the production manager should consider in determining his company’s ability to produce chips that meet specifications?

Do the chips produced meet the desired specifications?

What reasons should the production manager provide to the vice-president to justify that the production team is meeting specifications?

How will this decision impact the chip manufacturer’s sales and net profit?

Reference no: EM131236736

Questions Cloud

List the determinants of elasticity of demand : List the determinants of elasticity of demand (Ed). Explain what each determinant means. Identify two examples from your own personal or professional life that illustrates EACH one of the determinants of elasticity.

Find the benefit maximizing level of output : A firm faces the following inverse demand equation for the commodity it produces: P = 100 – Q where P represents the price/unit of the commodity it produces and Q represents the level of output produced. The cost structure of this firm is summarized ..

Government were severely constrained by scarcity : The U.S. is one of the worlds wealthiest countries think of a recent case in which the decision of the U.S government were severely constrained by scarcity. Describe the trade off that were involved. What were the opportunity cost of the decisions th..

Think technology makes workers more or less productive : Why is technology such an important part of the labor market? Do you think technology makes workers more or less productive and how does it relate to their wages?

Decision impact the chip manufacturers sales and net profit : A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufacturing, concerned about a possible loss o..

Why is their a growing disparity between the rich and poor : Why is their a growing disparity between the rich and poor in the US? What are some of the reasons for this and what should the government do to bring about growing equality with income? Do we as citizens have an ethical responsibility to help the po..

External environmental categories are government with factor : The 2 external environmental categories are government with factor, specific election results and economic interest rates with factor, interest rates . For factors, define and explain what increase, decrease, and steady state are.

What was the average annual growth of the price level : In 1947 in the United States, nominal GDP was $237 billion and real GDP was $1,771 billion in 2005 dollars. In 2011, nominal GDP was $14,869 billion and real GDP was $13,228 billion (also in 2005 dollars). What were the annual average growth rates of..

Demand for beer is characterized by the elasticities : Suppose the demand for beer is characterized by the following elasticities: • Own price elasticity = -2.5 • Cross-price elasticity with soda = +3 • Income elasticity = +2 Based on the given elasticities, If a firm in the industry wishes to increase t..

User Account

All Pages