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A machine is used in a production process. From past data, it is known that 97% of the time the machine is set up correctly. Furthermore, it is known that if the machine is set up correctly, it produces 95% acceptable (non-defective) items. However, when it is set up incorrectly, it produces only 40% acceptable items.
a.An item from the production line is selected. What is the probability that the selected item is non-defective?
b.Given that the selected item is non-defective, what is the probability that the machine is set up correctly?
Upstream
In supply chain and business contexts, referring to the processes or activities that occur at the beginning of the product lifecycle, including raw material extraction and sourcing.
Downstream
Refers to the stages in the production process where processed materials are transformed into final products, or in distribution and supply chain models, the points closer to the end consumer.
Distribution
The process of making a product or service available for the consumer or business user that needs it, through direct or indirect means.
Enterprise Resource Planning (ERP)
Integrated management of main business processes, often in real-time and mediated by software and technology.
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