LS1006: An auto component manufacturing company is contemplating introducing a new inspection process in their assembly line to save on rectifying cost. The current production is in batches, each batch produce 5000 components. The cost of inspection of each component is Rs 50, the cost of rectifying each defective component is Rs 250

 150

SKU: 139e948b351f Category:

Downloadable MBA Solution

Buy this solution and download mba assignment solution instantly after secured paypal payment.

Question: An auto component manufacturing company is contemplating introducing a new inspection process in their assembly line to save on rectifying cost. The current production is in batches, each batch produce 5000 components. The cost of inspection of each component is Rs 50, the cost of rectifying each defective component is Rs 250.
If a defective component is sent to customer and returned by customer it cost the company Rs 500. Calculate at what percentage of defective rate it would be beneficial for the company to adopt the proposal.


Complete MBA Assignments Solution

You can buy complete assignment solution. Visit yours university link from top menu and buy online. You can also post your assignment requirement through email, so our expert assignments tutor will solved your problem.