Question
The manager for quality control at a tool company has determined that quality control costs for the firm have two components, an inspection cost and
The manager for quality control at a tool company has determined that quality control
costs for the firm have two components, an inspection cost and a production repair cost (both in $thousands). Both costs are functions of the number of inspections performed
during the manufacturing process. The inspection cost is given by Ci= 4x, , where x is the
number of inspections performed each month. Monthly production repair costs decrease with the number of inspections, which eliminate defective tools before they are sold,
according to (Cr= 64/x) .Total quality control costs are the sum of these two functions.
- If the manager wishes to minimize the firm's total quality control costs, what number of inspections is optimal?
- How do you know the number of inspections you found minimizes total quality control costs?
- What's the minimized level of quality control costs?
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