Question

A company produces 11,900 units of which 200 are spoiled units because the​ process, even though carefully and efficiently executed is unable to produce good units​ 100% of the time. Another 120 units are spoiled because machines broke down and there also were operator errors. What is the normal spoilage rate​ (round to two decimal​ places)?

Answer 1

Answer:

Normal spoilage rate = 1.6978% (Approx)

Explanation:

Given:

Total unit produce = 11,900 units

Normal spoil unit = 200 units

Abnormal spoil unit = 120 units

Total normal unit produce = 11,900 - 120 = 11,780

Computation of normal spoilage rate:

Normal spoilage rate = Normal spoil unit / Total normal unit produce

Normal spoilage rate = 200 / 11,780

Normal spoilage rate = 0.0169779287

Normal spoilage rate = 1.6978% (Approx)