Q1. A machining process is capable of producing a component with an average specification of 5 inches and a process standard deviation of 0.08 inch. Suppose the customer accepts the component as long as it falls between 4.7 inches and 5.3 inches, thenthe process capability,C_p, is?

Q2. Suppose that you are the manager of A..N@Muikamachi.

Using EOQ model: Suppose that AEON sells a particular brand of tea. From historical data, the tea sells 8 cases/week in average. The ordering cost to replenish the tea is 1000 Yen per order. The carrying charge is 10 percent per year. The cost for each case is 500 Yen. Assume 52 weeks a year.

1. How many cases should be ordered at a time?
2. How often should the tea be ordered?
3. What is the annual cost of ordering and carrying tea?