AccepLable lns

Croup
rlef of Lhe case
W Company ls supplylng plns Lo a cusLomer
W 1he plns supplled by company has a mean of
1012 lnch and SLandard uevlaLlon of 0018
lnch
W 1he cusLomer would accepL Lhe plns havlng a
mean of 1 lnch wlLh a SLandard uevlaLlon of
002 lnch le cusLomer would accepL pln ln
range of 098 and 102
ercenL of lns LhaL would be accepLed
by cusLomer
W llndlng z aL x 102 uslng z (x)/o as we have
1012 and o 0018 So we have z 044
W Slmllarly flndlng z aL 098 we geL z 178
W now on Lhe bell curve we have Lo flnd area ln Lhe
range 178z044
W lrom Lhe normal dlsLrlbuLlon Lable we have (
178z0) 04623 and (0z044) 0170
W So flnally we have (178z044) 06323
W 1herefore no of plns accepLed by cusLomer are
6323
f laLhe can be ad[usLed Lo have deslred
mean Lhen whaL should be lL ad[usLed Lo?
W Mean should be ad[usLed so LhaL max amounL of
plns supplled by company are accepLed by cusLomer
W Mean should be ad[usLed ln such a way so LhaL
maxlmum area comes under x 098 and 102 le
demand of cusLomer
W CurrenLly Lhe plns LhaL we are maklng are ln Lhe
range 103 and 0994 (+o and o)
W So 102 Lo 103 goes ouL of Lhe range of accepLablllLy
of Lhe cusLomer
ConLd
W So Lo brlng lL ln Lhe range of accepLabllLy of
cusLomer Lhe maxlmum mean LhaL we can keep ls
102 + 0018 from lL we geL 1002
W And Lhe mln mean LhaL we can keep so LhaL lL ls ln
Lhe range of accepLablllLy of cusLomer ls
098 0018 from lL we geL 0998
W So we geL range as 0998 1002
W now flndlng z for all Lhese wlLh x 098 and 102
on flndlng Lhe z we would geL symmeLry aL 1
ConLd
W AL 1 uslng Lhe formula z (x)/o we
would geL for x 102 z 11 and for x 098
z 11
W now from Lhe normal dlsLrlbuLlon Lable for
(0z11) 03643 So (11z11) 0733
W 1herefore by ad[usLlng mean as 1 we would
geL maxlmum percenL of plns accepLed by
cusLomer le 733
Ad[usLlng Lhe SLandard uevlaLlon so LhaL Lhe probablllLy of
accepLance ls 90 keeplng Lhe mean as consLanL
W uslng Lhe normdlsL funcLlon ln excel and runnlng
Lhe goal seek
W AL x 102 wlLh 1012 and o 0018 flndlng
probablllLy uslng normdlsL funcLlon
W Slmllarly dolng aL x098
W AfLer LhaL subLracLlng Lhe Lwo probablllLles Lo geL
Lhe probablllLy of Lhelr occurrence le (
178z044) 0633
W AfLer LhaL runnlng Lhe goal seek for o and
geLLlng o 0006248
MicrosoL Oice
Fxcel WorksheeL
ConLd
W uslng Lhe normdlsL funcLlon ln excel and runnlng
Lhe goal seek
W AL x 102 wlLh 1012 and o 0018 flndlng
probablllLy uslng normdlsL funcLlon
W Slmllarly dolng aL x098
W AfLer LhaL subLracLlng Lhe Lwo probablllLles Lo geL
Lhe probablllLy of Lhelr occurrence le (
178z044) 0633
W AfLer LhaL runnlng Lhe goal seek for o and
geLLlng o 0003444 by ad[usLlng probablllLy Lo
99
Ad[usLlng Lhe SLandard uevlaLlon so LhaL Lhe
probablllLy of accepLance ls 93 and 99 keeplng Lhe
mean as consLanL
W uslng Lhe normdlsL funcLlon ln excel and runnlng
Lhe goal seek
W AL x 102 wlLh 1012 and o 0018 flndlng
probablllLy uslng normdlsL funcLlon
W Slmllarly dolng aL x098
W AfLer LhaL subLracLlng Lhe Lwo probablllLles Lo geL
Lhe probablllLy of Lhelr occurrence le (
178z044) 0633
W AfLer LhaL runnlng Lhe goal seek for o and
geLLlng o 0004873 by ad[usLlng probablllLy Lo
93
Jhlch one ls easler Lo ad[usL mean or
SLandard uevlaLlon?
llndlng cosL of reduclng Lhe sLandard
devlaLlon
W L cosL 130x Lo reduce Lhe o by (x/1000) lnch
W n Cues3 we have reduced o Lo 0006248 lnch
W So change ln o 0018 0006248 0011732 lnch
W o (11732/1000) so x 11732
W CosL 130*11732 207164236
W n Cues4 parL A we have reduced o Lo 0004873
W So change ln o 0018 0004873 0013127 lnch
W o (13127/1000) so x 13127
W CosL 130*13127 2384771933
ConLd
W n Cues4 parL we have reduced o Lo
0003444
W So change ln o 0018 0003444 0014336
lnch
W o (14336/1000) so x 14336
W CosL 130*14336 317813704
Ad[usLlng Lhe SLandard uevlaLlon so LhaL Lhe probablllLy of
accepLance ls 90 93 and 99 keeplng Lhe mean as 1
W uslng Lhe normulsL Lxcel funcLlon and Coal
Seek
robab|||ty Mean SD
090 1 0012168
093 1 0010207
099 1 0007777
MicrosoL Oice
Fxcel WorksheeL
conLd
W CosLs for changlng of Lhe Su
Standard
Dev|at|on
Change |n SD k Cost 1S0 k Add|ng cost
of change |n
Mean
0012168 0003832 3832 31018336 31818336
0010207 0007793 7793 910962733 918962733
0007777 0010223 10223 1367643933 1373643933
ecommendaLlon for SLandard
uevlaLlon and Mean
W 1o go wlLh Su 0012168 and mean 1 as
Lhls would me mlnlmlzlng Lhe cosL and success
raLe would be also 90