Defines reliability and is critical to competitive advantage

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1. Quality control, defines reliability and is critical to competitive advantage;

A. To achieve the best quality control the text states that one should follow the Six Sigma process. This involves identifying the most talented employees in the manufacturing process to closely scrutinize every minute detail of the production process

B. The Six Sigma process begins with the random selection of employees from related divisions who examine the QC process focusing on R&D almost exclusively.

C. The Six Sigma process is an annual exercise initiated by corporate management who engage the heads of the appropriate product division.

2. Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets.

Demand for white percale sheets is 3,000 per year. The store is open 365 days per year. Every four weeks (28 days) inventory is counted and a new order is placed. It takes 11 days for the sheets to be delivered. Standard deviation of demand for the sheets is four per day. There are currently 180 sheets on hand.

How many sheets should you order? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)

Number of sheets

Reference no: EM132123669

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