Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 1

The costs of inspection for four product attributes A, B, C, and D are $15, $5, $20, and $10, respectively. The cost of failure if any of these attributes fails is $200 (i.e., full replacement cost of the product). Prioritize where the company should inspect.