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Question
The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot of several thousand pizzas which his company produced this week, and is now ready to ship. If the cost of replacing a defective pizza once it has been shipped is $5.00, while the cost of complete (100 percent) inspection prior to shipment is $.30 per pizza, what is the point of indifference between complete inspection and shipment without inspection?
A. 1.67 percent defectives
B. 3 percent defectives
C. 5 percent defectives
D. 6 percent defectives
E. 16.7 percent defectives
Answer
This answer is hidden. It contains 26 characters.
Related questions
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
Short-term considerations in determining capacity requirements include:
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Q:
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Q:
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The ratio of actual output to design capacity is:
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Q:
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Q:
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Q:
Increasing productivity and also quality will result in increased capacity.
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A. user friendly
B. robust
C. distributed computer networks
D. cost effective
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Q:
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B. high cost.
C. longer lead times.
D. variety.
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Q:
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Q:
Which of the following statements about CAD is not true?
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B. It uses computer graphics.
C. It requires a good database.
D. Some systems permit engineering or cost analysis of proposed designs.
E. It is used successfully by all manufacturing companies.
Q:
The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is:
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B. applied research.
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Q:
Which of the following is not a reason for redesigning a product or service?
A. to reduce labor or material cost
B. to increase the level of employee satisfaction
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Q:
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Q:
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