How many additional inspectors should be employed. suppose, Ask an Expert

Management Studies

Suppose a local soft drink company is having too many contaminated bottles of drinks coming off the assembly line. Suppose also that the current cadre of inspectors has been successful in detecting only a small percentage of contaminated bottles. The company estimated that sales of soft drinks fell by $5,000 per month for every bottle of contaminated soft drink that was sold to the public. The engineering department recommended that more assembly line inspectors be hired to reduce the number of contaminated bottles leaving the assembly line. Based on current detection rate, the engineering department came up with a schedule showing the number of contaminated bottles that will leave the assembly line if additional assembly inspectors were to b e added.

Assembly Inspectors Number of Contaminated Bottles
0 100
1 80
2 58
3 30
4 20
5 16
6 14

If the cost of hiring an inspector is $20,000 per month in Jamaican dollars, then:

1) How many additional inspectors should be employed

2) Suppose the cost is $30,000 instead of $20,000. How many additional inspectors would you recommend?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M978408

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