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Q A shop that sells candles offers a scented candle, which has a monthly demand of 440 boxes. Currently, the shop purchases the candles from a supplier and the EOQ is 84. Candles can also be produced at the store at a rate of 36 boxes per day. Assume, for the both the scenarios (purchasing or production) holding cost is the same and production setup cost is equal to the ordering cost. The shop operates 20 days a month. Determine the optimal production run quantity: a. 135 b. 53 c. 216 d. Insufficient information e. 33

5)Studies on a machine that molds plastic water pipe indicate that when it is injecting 27.85 mm diameter pipe, the process standard deviation is 0.93 mm. The pipe has a specification of 27.85 mm plus or minus 1.54 mm. What is the process capability index (Cp)? a. 1.656 b. 0.276 c. 1.104 d. 0.552


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