As the supervisor in charge of shipping and receiving, you need to determine the

Question

As the supervisor in charge of shipping and receiving, you need to determine the average outgoing quality in a plant where the known incoming lots from your assembly line have an average defective rate of 3.0%. Your plan is to sample units of every 1,000 in a lot. The number of defects in a sample is not to exceed 3 Such a plan provides you with a probability of acceptance of each lot of 0.79 (79%). 1.000inalet oulping-theplantis. Nance or each lot of 0.79(79%) Theaver The average outgoing quality for the plant is--% enter your response as a percentage rounded to two decimal places

Explanation / Answer

Answer: -

Given data is

average defective rate = 3.0%

sample size = 80 units

lot size = 1000

probability of acceptance the lot = 0.79 (79%)

here we calculate AOQ ( Average Outgoing Quality )

AOQ = [ p(Pa)(N - n) ] / N

where p = true percentage defective rate = 3.0 %

Pa = probability of accepting the lot = 0.79

N = lot size = 1000

n = sample size = 80

AOQ = [ 3.0 ( 0.79 ) ( 1000 - 80 ) ] / 1000

= [ 2.37 ( 1000 - 80 ) ] / 1000

= [ 2.37 ( 920 ) ] / 1000

= 2180.4 / 1000

AOQ = 2.1804  

Therefore, AOQ = 2.18 % ( rounded to two decimal places )

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