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Suppose that the output of a bottle filling process is normally distributed with the natural variability of sigma = .10. The process center has been fixed at 10 ounces. The USL = 10.1 ounces and the LSL= 9.8 ounces. The liquid cost $0.35 per ounce and the firm only needs to fix bottles that weigh less than lower spec limit and fixing cost is $1.00 per bottle. What is the average cost (filling and fixing) per bottle of this process?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91878384

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