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The weight of nominal 1-kg containers of a concentrated chemical ingrediant are shown below data.
Part
0. 9475 0.9775 0.9965 1.0075 1.0180 0. 9705 0.9860 0.9975 1.0100 1.0200 0.9770 0.9960 1.0050 1.0175 1.0250
A. Suppose there is a lower specification at 0.985 kg. Caculate an appropriate process capabiity ratio for this material.
B. What percentage of the packages produced by the process is estimated to be below the specification limit?
Part 1: A company is using the Economic Order Quantity (EOQ) model to manage its inventories. Suppose its inventory holding cost per unit per year doubles while the annual demand a
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