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CLSSBB · Question #50
A Belt working in a supply chain environment has to make a decision to change suppliers of critical raw materials for a new product upgrade. The purchasing manager is depending on the Belt's effort re
The correct answer is C. $24. You've hit your limit · resets 12:50am (America/New_York)
Analyze Phase
Question
A Belt working in a supply chain environment has to make a decision to change suppliers of critical raw materials for a new product upgrade. The purchasing manager is depending on the Belt's effort requiring that the average cost of an internal critical raw material component be less than or equal to $3,800 in order to stay within budget. Using a sample of 38 first article components, a Mean of the new product upgrade price of $3,680, and a Standard Deviation of $120 was estimated. In order to increase the Long Term Z value to 5, what is the maximum long term variation in pricing the Belt can accept for his upgraded critical raw material component?
Options
- A$6
- B$12
- C$24
- D$48
How the community answered
(40 responses)- A8% (3)
- B13% (5)
- C60% (24)
- D20% (8)
Explanation
You've hit your limit · resets 12:50am (America/New_York)
Topics
#long-term Z value#process capability#variation calculation#sigma level
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