An automatic machine is used to fill cans with coffee. The nominal weight of each can is 16.0 oz. The standard deviation of the fill weight is known to be 0.10 oz. Cans are automatically inspected, and all underfilled cans are rejected. The selling price of a can of coffee is $3. Underfilled cans can be sold for $1.75. The cost of the coffee $0.10 per ounce. Determine the optimum mean target level for the filling machine

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter10: Introduction To Simulation Modeling
Section: Chapter Questions
Problem 41P: At the beginning of each week, a machine is in one of four conditions: 1 = excellent; 2 = good; 3 =...
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An automatic machine is used to fill cans with coffee. The nominal weight of each can is 16.0 oz. The standard deviation of the fill weight is known to be 0.10 oz. Cans are automatically inspected, and all underfilled cans are rejected. The selling price of a can of coffee is $3. Underfilled cans can be sold for $1.75. The cost of the coffee $0.10 per ounce. Determine the optimum mean target level for the filling machine

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ISBN:
9781337406659
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Cengage,