Air Gascogne operates daily round-trip flights on the ToulouseStockholm route using a fleet of three 747s, the
Question:
Air Gascogne operates daily round-trip flights on the Toulouse–Stockholm route using a fleet of three 747s, the Eclair des Cévennes, the Eclair des Vosges and the Eclair des Alpilles. The budgeted quantity of fuel for each round-trip flight is the mean (average) fuel usage. Over the last 12 months, the average fuel usage per round-trip is 1000 litre-units with a standard deviation of 100 litre-units. A litre-unit is 1000 litres.
Gervaise Plassans, the operations manager of Air Gascogne, uses a statistical quality control (SQC) approach in deciding whether to investigate fuel usage per round-trip flight. She investigates those flights with fuel usage greater than two standard deviations from the mean.
In October, Plassans receives the following report for round-trip fuel usage by the three planes operating on the Toulouse–Stockholm route:
Required
1. Using the ±2σ rule, what variance investigation decisions would be made?
2. Present SQC charts for round-trip fuel usage for each of the three 747s in October. What inferences can you draw from them?
Step by Step Answer:
Management And Cost Accounting
ISBN: 9781292232669
7th Edition
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan