The Costs of Quality Are Given by the Following Equations

question 60

Short Answer

The costs of quality are given by the following equations:
Cₐ = 20D + 5000
Cp = 15000-100D
Cf = 50 × eᴰ/⁴
where:
Cₐ is the cost of appraisal,
Cp is the cost of prevention,and
Cf is the cost of failure.Note that D is the percent defectives and 0 < D < 100.What will be the total costs of quality if D = 4 percent? At what defective rate will total costs of quality be minimized?

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