Examlex

Solved

A Firm That Makes Plastic Wrapping Material Takes Random Samples

question 5

Essay

A firm that makes plastic wrapping material takes random samples of 50 items from each lot before it is sent to a customer. Lots contain 2,000 items each. Any lot with more than one defective is subjected to 100 percent inspection, and any defectives are replaced with good ones.
(A) Construct the OC curve for this plan.
(B) Construct the AOQ curve for this plan. What is the approximate AOQ limit?


Definitions:

Future Holder

A future holder refers to an entity or individual who will hold a right, position, or property at a future date.

Fee Simple Absolute

An ownership interest in which the holder has exclusive rights to ownership and possession of the land to the holder; the most comprehensive type of estate.

Conditional Estate

A type of property ownership that is subject to certain conditions or requirements being met.

Condition

A provision in a contract or agreement that stipulates a specific event or action must occur before the contract is considered effective or a duty is triggered.

Related Questions