The Quality Control Manager for NKA Inc

question 61

Essay

The quality control manager for NKA Inc.must decide whether to accept (alternative 1),further analyze (alternative 2),or reject (alternative 3)an incoming shipment (lot)of microchips.The historical data indicate that there is a 30 percent chance that the lot is poor quality (S₁),50 percent chance that the lot is fair quality (S₂),and 20 percent chance that the lot is good quality (S₃).Assume the following payoff table is available.The values in the payoff table are in thousands of dollars. What alternative action should be selected according to the maximin criterion?

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Definitions:

Valuable

Describes something that holds great worth or importance, often due to its utility, rarity, or contribution towards achieving a goal.

Organized

Having a structured and systematic arrangement; often refers to entities or groups that are systematically coordinated, such as labor unions.

Efficient

The ability to achieve maximum productivity with minimum wasted effort or expense, often related to processes, systems, or machines.

Continuous Replacement

A strategy that involves regularly updating and replacing resources, assets, or personnel to maintain efficiency and competitiveness.