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Suppose that the output of a bottle filling process is normally distributed with a natural process variability of σ = 0.10. The process center has been fixed at 10 ounces. The Upper Spec Limit = 10.2 ounces and the Lower Spec Limit = 9.8 ounces. The liquid costs $0.25 per ounce and the bottles cost $0.50 to fix if they are out of spec. What is the average cost per bottle (filling and fixing) of this process.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92527357

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