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Design speci?cations require that a key dimension on a product measure 90 ±10 units. A process being considered for producing this product has a standard deviation of four units. (a) What can you say (quantitatively) regarding the process capability? (b) Suppose the process average shifts to 84. Calculate the new process capability. (c) What can you say about the process after the shift? (d) Approximately what percentage of the items produced will be defective?
Compute the total variable inventory cost with the optimal Q* and R*. a. $400 b. $200 c. $800 d. $600 e. $1000
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