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Six_Sigma

ICBB · Question #91

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…

The correct answer is B. $35. You've hit your session limit · resets 5:20pm (America/New_York)

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 $4,200 in order to stay within budget. Using a sample of 35 first article components, a Mean of the new product upgrade price of $4,060, and a Standard Deviation of $98 was estimated. In order to increase the Long Term Z value to 4, what is the maximum long term variation in pricing the Belt can accept for his upgraded critical raw material component?

Options

  • A$20
  • B$35
  • C$70
  • D$110

How the community answered

(52 responses)
  • A
    15% (8)
  • B
    71% (37)
  • C
    10% (5)
  • D
    4% (2)

Explanation

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