Problem NO: 20

The additional operation in the preceding problem will add $2.00 to the current cost of the part,\nwhich is $13.50. If the rate of returns from the cus

The additional operation in the preceding problem will add $2.00 to the current cost of the part,

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which is $13.50. If the rate of returns from the customer at the tolerance of ±0.025 in is 2.1%, and

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it is expected to drop to zero returns using the new tolerance, should the company add the finish

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grinding operation to the manufacturing sequence for the part? Answer this question using the

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basic cost and return rate data without consideration of the Taguchi loss function.

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