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Business, 08.10.2019 03:20 kukisbae

Your factory is producing 100,000 kids’ bikes. you currently inspect 5% of the bikes at a cost of $50 per bike inspected. (assume this cost includes the cost of reworking defective bikes.) with this level of inspection you are receiving warranty claims on 1% of the bikes that you sell. your cost of processing a warranty claim is $500. what is your external cost of quality in this situation?

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Your factory is producing 100,000 kids’ bikes. you currently inspect 5% of the bikes at a cost of $5...
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