Calculate the optimal order quantity. Notice that even though demand is variable, you may calculate the EOQ value with average demand and find the optimal order quantity. How does this order quantity compare to the current order quantities?

Number of samples Sample size Average radius Standard deviation of radius Upper controllimit Lower control limit Upper specification limit Lower specification limit Radius measurements normally distributed? Process in control? Results for parts 3N817a-3N817) 100 4 0.127 0.001 0.1285 0.1255 0.130mm 0.124mm Yes Results for universal part to replace 3N817a-3N817) 75 9 0.128 0.0005 0.1285 0.1275 0.130mm 0.124mm Yes Yes