In Exercise 10-43 if the initial inspection costs of the transmission systems are $ 1.00 per unit, what inspection policy should be followed using Deming's kp rule?
In Exercise 10.43
The initial inspection of transmission systems in automobiles is estimated to cost $0.50 per unit. If a nonconforming transmission is allowed in the assembly, the unit cost to eventually disassemble and replace it is $225. The estimated proportion nonconforming of the transmission systems is 0.003. Using Deming's kp rule, what inspection policy should be used?