Requirement 1. Identify total costs of quality by category (appraisal, internal failure, and external failure.) Requirement 2. Dream Travel is concerned with the high up-front cost of inspecting all 100,000 units. Managers are considering an alternative internal inspection pla that will cost only $1.00 per car seat inspected. During the internal inspection, the alternative technique will detect only 1.5% of the 100,000 car seats that have stitching problems. The other 5.5% will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative technique? Requirement 3. What factors other than cost should Dream Travel consider before changing inspection techniques? A. There could easily be serious reputation effects if the percentage of external failures increases significantly. This rise in external failures may lead to costs greater than $450 per failure due to lost sales. B. Higher external failure rates may increase the probability of lawsuits. C. Both of the above. D. Neither of the above, cost is the only factor Dream Travel should consider before changing inspection techniques. ream Travel produces car seats for children from newborn to 2 years old. Dream Travel's only problem with its car seats was stitching in the straps. The problem car sually be detected and repaired during an internal inspection. Requirements 1. Identify total costs of quality by category (appraisal, internal failure, and external failure). 2. Dream Travel is concerned with the high up-front cost of inspecting all 100,000 units. Managers are considering an alternative internal inspection plan that will cost only $1.00 per car seat inspected. During the internal inspection, the alternative technique will detect only 1.5% of the 100,000 car seats that have stitching problems. The other 5.5% will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative technique? 3. What factors other than cost should Dream Travel consider before changing inspection techniques? More info Inspection costs $4.00 per car seat, and repairs cost $2.00 per car seat. All 100,000 car seats were inspected last year, and 3% were found to have problems with the stitching. Another 4% of the 100,000 car seats had problems with the stitching, but the internal inspection did not discover them. Defective units that were sold and shipped to customers are shipped back to Dream Travel and repaired. Shipping costs are $10.00 per car seat, and repair costs are $2.00 per car seat. Negative publicity will result in a loss of future contribution margin of $450 for each external failure