The Fresh Pie Company purchases apples from a local farm to be used in preparing the filling for its apple pies. Sometimes the apples are fresh and ripe. Other times they can be spoiled or not ripe enough.

The company has decided that it needs an acceptance sampling plan for the purchased apples. Fresh Pie has decided that the acceptable quality level is 1 defective apple per 100, and the lot tolerance proportion defective is 5 percent. Producer’s risk should be no more than 5 percent and consumer’s risk 10 percent.

a. Develop a plan that satisfies the above requirements.

b. Determine the AOQL for your plan, assuming that the lot size is 1,000 apples.