Problem:
The costs of quality are given by the following equations:
Ca = 100D + 1500
Cp = -50D + 6300
Cf = De0.5D
where:
Ca is the cost of appraisal,
Cp is the cost of prevention, and
Cf is the cost of failure.
Note that D is the percent defectives and 0 <= D<= 100.
Required:
Determine the total cost of quality when there are no defectives. D= 0 and product quality is perfect.
Solve the problem and show all work.