What are the costs related to the decision to shut down


Discussion Post: Nutella Spreads the Word about Quality

A quality defect was detected in samples of Nutella spread and Kinder Bueno candy bars that led to a shut down of the Nutella factory in Normandy, France.

Despite the shut down of the factory, which produces one-quarter of the world's chocolate-hazelnut spread, the supply of Nutella has not been interrupted. Ferrero, the parent company of Nutella in Italy simply wants to take extra precaution to maintain its high quality standard.

YouTube Video Spotlight: "Nutella Driving Force of Italy's Richest Man"

This post is based on the Fortune article, World's Biggest Nutella Factory Shut Down Over ‘Quality Issues', by Grace Dobush, February 21, 2019, and the YouTube video, Nutella Driving Force of Italy's Richest Man, by Bloomberg, May 19, 2014. Image source: lynx/iconotec.com/Glowimages

Task:

• What are the costs related to the decision to shut down the Nutella factory when a quality defect was detected?
• What kind of control chart will be appropriate to ensure Nutella's production process is in control?

The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.

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