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The Backwoods American company produces approximately 20,000 parkas annually. The quality management program the company implemented was able to improve the average percentage of good parkas produced by 2% each year, beginning with 83% good-quality parkas in 2003. Only about 20% of poor-quality parkas can be reworked. a. Compute the product yield for each of the five years. b. Using a rework cost of $12 per parka, determine the manufacturing cost per good parka for each of the five years. What do these results imply about the company's quality management program?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93072225

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