### The tolerance on the cupcake diameter

Assignment Help Operation Management
##### Reference no: EM1387009

You are an operations analyst at cake-r-us, and they make cupcakes that are supposed to have a top diameter of 38mm. The tolerance on the cupcake diameter is 0.5 plus or minus mm. If the cupcake diameter is outside the tolerance, it must be eaten by you for \$1.50. Cakes-r-us uses the Taguchi quality loss function to estimate quality costs. You take a sample of 5 cupcakes, and the diameters are 37.8, 37.7, 38.1, 38.6, and 38.0 mm.

What is the Taguchi quality cost of that sample of 5 cupcakes?

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