nerdexam
GAQM

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)
  • A
    8% (3)
  • B
    13% (5)
  • C
    60% (24)
  • D
    20% (8)

Explanation

You've hit your limit · resets 12:50am (America/New_York)

Topics

#long-term Z value#process capability#variation calculation#sigma level

Community Discussion

No community discussion yet for this question.

Full CLSSBB Practice