Consider an Engine Parts Supplier,and Suppose the Supplier Has Determined

question 22

Short Answer

Consider an engine parts supplier,and suppose the supplier has determined that the mean and variance of the population of all cylindrical engine part outside diameters produced by the current machine are,respectively,2.5 inches and .00075.To reduce this variance,a new machine is designed.A random sample of 20 outside diameters produced by this new machine has a sample mean of 2.5 inches and a variance of s² = .0002 (normal distribution).In order for a cylindrical engine part to give an engine long life,the outside diameter must be between 2.43 and 2.57 inches.Assuming normality,determine whether 99.73 percent of the outside diameters produced by the current machine are within specification limits.

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Definitions:

Just-In-Time

An inventory strategy that aligns raw-material orders from suppliers directly with production schedules to minimize stock levels.

EOQ

Economic Order Quantity; the ideal order quantity a company should purchase to minimize its inventory costs, including holding, shortage, and order costs.

Just-In-Time

An inventory management strategy that aims to increase efficiency and reduce waste by receiving goods only as they are needed in the production process.

Manufacturing Firms

Companies engaged in the production of goods in large quantities, often utilizing complex machinery and human labor in factories.