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

Exercise 7

The costs of inspection for five product attributes A, B, C, D, and E are S10, $5, $4, $2, and $12, respectively. The cost of failure for each attribute is estimated to be $25 for A, $15 for B, $30 for C, $10 for D, and $42 for E. Develop a priority order for how the company should inspect.