Recall the formula for rating suppliers using the quality cost performance index (QCPI) given by:

QCPI={supplier quality cost + purchased cost}/{purchased cost}={SQC+PC}/{PC}.

If a given supplier wants to be rated as excellent by having a QCPI between 1.000 and 1.009, what should the relationship between the PC and SQC be for this supplier?

Select one:

a. The relationship cannot be determined

b. SQC is greater than or equal to zero, less than or equal to 1.009*PC

c. PC is greater than or equal to zero, less than or equal to 1.009*SQC

d. SQC is greater than or equal to zero, less than or equal to 0.009*PC

e. PC is greater than or equal to zero, less than or equal to 0.009*SQC