This exercise describes that poor quality can affect schedules and costs. A manufacturing process has 130 customer orders to fill. Each order needs one component part that is bought from a supplier. However, typically, 4% of the components are identified as defective, and the components can be supposed to be independent.
(a) If the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components?
(b) If the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components?
(c) If the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?