This problem is intended to show the merits of a partially distributed inspection systems in…

This problem is intended to show the merits of a partially distributed inspection systems in which inspections are placed after processing steps that generate a high fraction defect rate. The processing sequence consists of eight operations with fraction defect rates for each operation as follows:

Three alternatives are to be compared; (I) fully distributed inspection, with an inspection after every operation; (2) partially distributed inspection, with inspections following operations 4 and 8 only; and (3) one final inspection station after operation 8. All inspections include sortations. In alternative (2), the inspection procedures are each designed to detect all of the defects for the preceding four operations-The cost of processing is Cpr = $1.00 for each of operations 1-8. Inspection/sortation costs for each alternative arc given in the following table. Compare total processing and inspection costs for the three cases.