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The Costs of Quality Are Given by the Following Equations

Question 70

Short Answer

The costs of quality are given by the following equations:
Cₐ = 20D + 5000
Cp = 15000 - 100D
Cf = 50 × eᴰ/⁴
where:
Cₐ is the cost of appraisal,
Cp is the cost of prevention,and
Cf is the cost of failure.Note that D is the percent defectives and,it is reasonable to set 0 < D < 100.What will be the appraisal cost if D = 10 percent?

Correct Answer:

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