Suppose that XYZ Company is acquired by ABC Company. How much will ABC order at a time after the acquisition of XYZ? What are the annual inventory related savings for the new company (when compared to the situation where ABC and XYZ were operating independently)?
January 5, 2018
The CP2010-Deluxe unit volume is expected at 350,000 units next year, and the CP2010-Millenium is expected to achieve a 500,000 unit sales level. The fixed costs of launching the CP2010-X have been forecast at $2.5 million during its first year on the market. Should Mr. Doors add the CP2010-X model to the line of minicomputers?
January 5, 2018

Toledo Tire Company recently bought a new compressor which automatically fills automotive tires to specified pressure. It was specified by the compressor manufacturer that standard deviation for the fillings was 2 PSI.

Toledo Tire Company recently bought a new compressor which automatically fills automotive tires to specified pressure. It was specified by the compressor manufacturer that standard deviation for the fillings was 2 PSI. For getting best fuel economy, it is suggested the tire pressures should be set in the range 30 to 35 PSI. Since under-inflation is lot more undesirable than over inflation, the manager set the compressor to fill the tires at an average pressure of 33.0 PSI. Answer the following questions-
1. What is the process capability of the system for filling tires?
2. What proportion of tires can be expected to be under inflated?
3. What proportion of tires can be expected to be over inflated?
4. What can the manager do to increase the proportion of properly inflated tires?

 

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