EBK PRODUCTION AND OPERATIONS ANALYSIS
EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 9781478628385
Author: Olsen
Publisher: WAVELAND PRESS (ECONTENT)
bartleby

Videos

Question
Book Icon
Chapter 12, Problem 61AP
Summary Introduction

Interpretation:Values of alpha and beta are to be determined.

Concept Introduction:Control charts are used to measure the effectiveness of the process determining the average value and control limits of the process. The Upper Control Limit (UCL) is the larger value and the Lower Control limit (LCL) is the smaller value of the sample. These limits gives a range to the data available.

Expert Solution & Answer
Check Mark

Answer to Problem 61AP

The producers risk α is 0.0862.

The consumers risk (β)is 0.583

Explanation of Solution

Given information:

The AQL and LTPD are 5 percent and 10 percent respectively.

A and B supply the product D to company N in the lot sizes of 100 and 1,000 respectively. 10 percent chips are selected at random and the lot is rejected if two or more defective chips are found.

First, calculate the producers risk (α) and (β) of manufacturer A as follows:

Manufacturer A supplies the chips in the lot size of 100

10 percent of chips in a lot of 100 is the sample size, n = 10

A lot is rejected if the number of defects X2 , p=pο and p=p1 .

The hypothesis of the test is

  pο Is Acceptable Quality Level (AQL) = 0.05

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 2

X is the number of defectives in the sample

n is the sample size of the first sample = 10

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (α) producers risk as follows:

  Xc1 , reject lot

  X2 reject lot or else accept

Consider p=pο=0.05

  α=1P{rejectlot|p=pο}

  α=1P{x2|p=0.05,n=10}

  α=1P{x1|p=0.05}

  α=1x=01(10x)(0.05)x(10.05)10x

  α=10.9138

  α=0.0862

The producers risk α is 0.0862.

Now, calculate the consumers risk (β)as follows:

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 2

X is the number of defectives in the sample

n is the sample size of the first sample = 10

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (β) as follows:

  Xc1 , accept lot

  X2 accepted lot or else reject

Consider p=p1=0.10

  β=P{x2|p=0.10}

  β=1P{x2|p=0.10,n=10}

  β=1x=01(100)(0.10)x(10.10)10x

  β=0.7361

The consumers risk (β) is 0.7381

The consumer risk is more than the producer risk for manufacturer A.

The producers risk (α)and consumers risk (β)for manufacturers A and B is calculated as follows:

Manufacturer A supplies the chips in the lot size of 1,000

10 percent of chips in a lot of 100 is the sample size, n = 100

A lot is rejected if the number of defects X2 , p=pο and p=p1 .

The hypothesis of the test is

  pο Is Acceptable Quality Level (AQL) = 0.05

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 2

X is the number of defectives in the sample

n is the sample size of the first sample = 100

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (α) producers risk as follows:

  Xc1 , reject lot

  X2 reject lot or else accept

Consider p=pο=0.05

  α=1P{rejectlot|p=pο}

  α=1P{x2|p=0.05,n=100}

  α={x1|θ=5}(poissondistributionapplication)

  α=1x=01e55x!

  α=10.0404

  α=0.9596

The producers risk (α)is 0.9596.Now, calculate the consumers risk (β)as follows:

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 2

X is the number of defectives in the sample

n is the sample size of the first sample = 100

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (β) as follows:

  Xc1 , accept lot

  X2 accepted lot or else reject

Consider p=p1=0.10

  β=P{x2|p=0.10}

  β=1P{x2|p=0.10,n=10}

  β=P[X£1|θ=10](poissondistributionapplication)

  β=x=01e1010xx!

  β=0.0005

The consumers risk (β) is0.0005.

The consumer risk is less than the producer risk for manufacturer B.

Reject the lot if more than 10 percent of the chips in a sample are defective.

Therefore, for manufacturer A, c = 1 and for manufacturer B, c = 10.

Manufacturer B is in a more advantageous position than A. The hypothesis of the test is

  pο Is Acceptable Quality Level (AQL) = 0.05

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 10

X is the number of defectives in the sample

n is the sample size of the first sample = 100

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (α) producers risk as follows:

  Xc1 , reject lot

  X2 reject lot or else accept

Consider p=pο=0.05

  α=1P{rejectlot|p=pο}

  α=1P{x10|p=0.05,n=100}

  α=1P{x10|p=0.05}

  α=0.0137

The producers risk (α) is 0.0137.

Now, calculate the consumers risk(β)as follows:

  p1 Is Lot Tolerance Percent Defective (LTPD) = 0.10

  c1 Is the rejection level 10

X is the number of defectives in the sample

n is the sample size of the first sample = 100

If the number of defectives in the sample is less than or equal to c1 the lot can be accepted or else r ejected. Apply the above values to find (β) as follows:

  Xc1 , accept lot

  X2 accepted lot or else reject

Consider p=p1=0.10

  β=P{x10|p=0.10}

  β=P{x10|p=0.10,n=100}

  β=0.583

The consumers risk (β)is 0.583 Therefore, the consumer risk is more when the lot has more than 10 percent of the sample as defectives.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Z ​Pr(Z) 0.38 65 0.50 69 0.67 75 0.84 80 1.04 85 1.28 90 1.41 92 1.56 94 1.65 95 1.75 96 2.06 98 2.33 99   Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past​ year, the mean lead time demand for bandage​ BX-5 was 60 (and was normally​ distributed). Furthermore, the standard deviation for​ BX-5 was 6. Ms. Flynn would like to maintain a 90​% service level.    ​a) What safety stock level do you recommend for​ BX-5? Safety stock​ =  units ​(round your response to the nearest whole​ number).
Tyler Apiaries sells bees and beekeeping supplies. Bees (including a queen) are shipped in special packages according to weight. The target weight of a package is 16 kg. Historically, Tyler's shipments have weighed on average 16 kg, with a standard deviation of 0.8 kg. The buyer will accept some reasonable variation in weight as long as the variation is within a range of +/-3 kg. What is the process capability ratio?
Find Values of n and cHi-Tech Industries manufactures Z-Band radar scanners used to detect speed traps. The printed circuit boards in the scanners are purchased from an outside vendor. The vendor produces the boards to an AQL of 2 percent defectives and is willing to run a 5 percent risk (α) of having lots of this level or fewer defectives rejected. Hi-Tech considers lots of 8 percent ormore defectives (LTPD) unacceptable and wants to ensure that it will accept such poor quality lots no more than 10 percent of the time (β). A large shipment has just been delivered. What values of n and c should be selected to determine the quality of this lot?
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Forecasting 2: Forecasting Types & Qualitative methods; Author: Adapala Academy & IES GS for Exams;https://www.youtube.com/watch?v=npWni9K6Z_g;License: Standard YouTube License, CC-BY
Introduction to Forecasting - with Examples; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=98K7AG32qv8;License: Standard Youtube License