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Determine the optimal production run quantity

Six samples of five observations each have been taken for a process. The sample means and ranges computed (in minutes) are, (mean, range): (4.11, 0.51), (3.53, 0.76), (3.67, 0.54), (3.59, 0.67), (3.9, 0.46), and (4.13, 0.48). Compute the upper control limit
a. 2.404
b. 4.095
c. 2.787
d. 4.152
A chocolate manufacturer makes a variety of chocolate products including large chocolate bars (340 grams) and boxes of six smaller chocolate bars (170 grams in total). Specification for a large bar is 330 grams to 350 grams. What is the largest standard deviation (in grams) that the machine that fills the bar moulds can have and still be considered capable if its average fill is 340 grams?
Select one:
a. 3 grams
b. 3.33 grams
c. 4.5 grams
d. 2.5 grams
A shop that sells candles offers a scented candle, which has a monthly demand of 400 boxes. Currently, the shop purchases the candels from a supplier and the EOQ is 115. Candles can also be produced at the store at a rate of 26 boxes per day. Assume, for the both the scenarios (purchasing or production) holding cost is the same and production setup cost is euqal to the ordering cost. The shop operates 20 days a month. Determine the optimal production run quantity:
a. 27
b. Insufficient information
c. 56
d. 240
e. 499

Solution:

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