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university of southern california Operations And Supply Chain Management Assignment Help - Sally Statistics


Question - Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an
effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If an
80% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would
the percentage reduction in monthly scrap cost be after the charts have been implemented for 12
months? (Hint: Model each month as a unit of production.)

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