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Chapter 3: 1OQ(c) (page 345)

Question: Is there a benefit (or loss) from the current inspection process? How much?

Short Answer

Expert verified

Answer

The current inspection process is quite beneficial.

Step by step solution

01

Step 1: Importance of the current inspection process

Step 1:Importance of the current inspection process

.

The inspection process is used to calculate the ultimate reduction in the cost. It is very beneficial since it helps decrease the rejection losses and deduct the manufacturing costs of production.

02

Step 2:  Calculation of benefits each hour

Step 2: Calculation of benefits each hour

The formula is given below:

Benefits each hour = non inspection each hour - inspection cost per hour

= 20-9

=11 dollar

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