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Suppose that the specifications for the length of a piece of wood are 36 ± 0.2 inches. If the length of the piece is out of spec, then the whole piece must be recycled at a cost of $10.00. Suppose that you’ve hired a consultant, Joe Know-It-All, who believes that Taguchi was wrong and that the quality loss function should actually be linear rather than quadratic (L = TD). What then, would Joe Know-It-All say is the quality cost of a piece of wood that is 36.05 inches long? a. $250.00 b. $4000.00 c. $2.50 d. $0.125 e. $0.625 f. $2.00 g. $1.25 h. $324,900.63.

Operation Management, Management Studies

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