Question: Two inspection alternatives are to be compared for a processing sequence consisting of 20 operations performed on a batch of 100 starting parts:
(1) one final inspection and sorts-lion operation following the last processing operation and
(2) distributed inspection with an inspection and sortation operation after each processing operation.
The cost of each processing operation Cpr = $1.00 per unit processed. The fraction defect rate at each operation q = 0.03.The cost of the single final Inspection and satiation operation in alternative (I) is Csf = $2.00 per unit. The cost of each inspection and sortation operation in alternative (2) is Cs = $0.10 per unit. Compare total processing and inspection costs per batch for the two cases.