The value of the units shipped must be reduced because $350,000 worth of them have been returned
Question:
The value of the units shipped must be reduced because $350,000 worth of them have been returned as defective. Of the finished goods units (FG),
$150,000 worth been returned as defective. All WIP units are within tolerances. Rework on the defective units reduces their value by 70%. What is the cost of the quality problem that has surfaced? Discuss what this means in terms of total productivity. Show that total productivity has dropped significantly
(see Problem 3).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Production And Operations Management Systems
ISBN: 9781466507333
1st Edition
Authors: Sushil Gupta; Martin Starr
Question Posted: