What is the annual expected fixing cost of this


Consider a normally distributed process that cuts wood with a “process center” of 18 inches and a standard deviation of .08 inches. The lower specification limit is 17.75 inches, and the upper specification limit is 18.18 inches. A piece of wood that is cut too short must be scrapped at a cost of $22.00. A piece of wood that is cut too long must be re-cut by hand at a cost of $4.50. The firm runs 20,000 pieces of wood through the machine per day and works 350 days per year. What is the annual expected fixing cost of this process?

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Operation Management: What is the annual expected fixing cost of this
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