Heizer, J., Render, B., & Griffin, P. (2020). Operations management: Sustainability and supply chain management (3rd Canadian ed.). Pearson Canada Inc.
You are to prepare a MS Word handout, and/ or Excel if needed, then prepare your responses in the same format, and submit as a saved file to the appropriate submission page on the course web site by the designated due date.
In each submission, please provide all your working steps for arriving at the answer. Type in your responses immediately following each question, and/or in the cells where required. This document will automatically expand to provide the space you require to do this.
Outside sources must NOT be used to complete the Problem Set unless the Professor has provided written permission in advance of submitting the assignment for grading
Questions (Problem from textbook online tutorial (T2))
T2.5 Kristi Conlin’s firm in Waco, Texas, has designed an OC curve that shows a chance of accepting lots with a true percentage defective of 2%. Lots of 1,000 units are produced at a time, with 100 of each lot sampled randomly. What is the average outgoing quality level?
A bank follows an acceptance sampling plan, where in a lot of 4000 credit accounts, a sample of 20 accounts are examined. If more than one defective account is found, the whole lot will be subjected to 100 percent inspection.
Construct the OC curve for this sampling plan.
Construct the AOQ curve for this plan using formula 10S-9 (page 13 of reading 2, Stevenson text), assuming defectives found during 100 percent inspection are replaced with good parts. What is the approximate AOQL?