Three independent operations (1, 2, and 3) are performed
sequentially in the manufacture of a product. The first-pass yields
(proportion conforming) for each operation are given by
p1 = 0.90, p2 = 0.95, and p3 =
0.80, respectively, for operations 1, 2, and 3. The unit production
costs for each operation are u1 = $5, u2 =
$10, and u3 = $15, respectively.
What is the unit cost per conforming (or good) product?
Suppose, through quality improvement effort, the first-pass...