Refer to the data in the preceding two exercises.
Required:
(1) Assume the additional Gloss Coat equipment and the additional Surface Prep crew are not available. Another inspection operation can be added to the process, positioned immediately before or after any one of the existing operations. Such an inspection would cost $1,800 per month and would detect and remove all units that are defective at that stage of processing. Should the company create another inspection operation? If so, where in the sequence of operations should it occur?
(2) Calculate the monthly advantage or disadvantage of adding the second inspection operation.