Essay
A firm that makes plastic wrapping material takes random samples of 50 items from each lot before it is sent to a customer. Lots contain 2,000 items each. Any lot with more than one defective is subjected to 100 percent inspection, and any defectives are replaced with good ones.
(A) Construct the OC curve for this plan.
(B) Construct the AOQ curve for this plan. What is the approximate AOQ limit?
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