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A Toy Manufacturer Is Experiencing Quality Problems on Its Assembly

question 37

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A toy manufacturer is experiencing quality problems on its assembly line. Every defective toy that leaves the factory costs the firm $20. The firm has decided to hire quality inspectors to catch defective toys before they leave the factory.

 Nimber of  Number of Defective  Inspectors  Toys (per day)  040124216310465260\begin{array}{ll}\text { Nimber of } & \text { Number of Defective } \\\text { Inspectors } & \text { Toys (per day) }\\0 & 40 \\1 & 24 \\2 & 16 \\3 & 10 \\4 & 6 \\5 & 2 \\6 & 0\end{array}
-If each inspector is paid $100 a day, how many inspectors should the firm hire to minimize the total cost of defective toys?

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Definitions:

Proactive

Pertains to taking initiative by acting in anticipation of future problems, needs, or changes rather than reacting to them.

Innovation

The process of introducing new ideas, devices, or methods to enhance processes, goods, or services.

Status Quo Managers

Leaders who prefer maintaining existing conditions or the current state of affairs within an organization, often resistant to change.

High Involvement Management

A management approach that emphasizes employee participation in decision-making and the day-to-day operations of the organization.

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