A semiconductor wafer fabrication facility received an order for specially designed prototype semiconductor wafers. The cost of

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A semiconductor wafer fabrication facility received an order for specially designed prototype semiconductor wafers. The cost of producing each wafer is estimated to be

$20,000. The customer agrees to pay $150,000 for three good wafers, $200,000 for four good wafers, and $250,000 for five good wafers. Other than the three, four, or five good wafers, all other wafers, good or bad, must be destroyed. To obtain the contract, the wafer fab offers to pay the customer $100,000 if at least three good wafers are not produced. Each wafer is produced independently; the probability of a wafer being acceptable is estimated to be 0.75. Determine the number of wafers to produce, as well as the probability of losing money on the transaction.

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Facilities Planning

ISBN: 9780470444047

4th Edition

Authors: James A. Tompkins, John A. White, Yavuz A. Bozer, J. M. A. Tanchoco

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