The cost to do 100 inspection of incoming parts is 070 per, Ask an Expert

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The cost to do 100% inspection of incoming parts is $0.70 per item and the cost to replace a defect later in the process when the defect becomes obvious is $18.25.

At what proportion of actual defects is the the organization indifferent between 100% inspection, and accepting the lot and replacing the items later in the process?

Express as a decimal rounded to three places.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92576501

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