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Operations and production managers often use the normal distribution as a probability model to forecast demand in order to determine inventory

Operations and production managers often use the normal distribution as a probability model to forecast demand in order to determine inventory levels, manage the supply chain, control production and service processes, and perform quality assurance checks on products and services. The information gained from such statistical analyses help managers optimize resource allocation and reduce process time, which in turn often improves profit margins and customer satisfaction.

Based on your understanding of the characteristics of the normal distribution, examine the chart below.  Process A standard deviation is .9, Process B standard deviation is 1.4, and the mean of both processes is 12. Contribute to our discussion by posting a response to the of the questions below.

  1. Which of the processes shows more variation? What does this mean practically?
  2. If the product specification quality limits were 12 +/- 3, which of the processes more consistently meets specification? Explain why.
  3. If the product specification quality limits were changed to 12 +/- 6, is quality loosening or tightening? Which process would benefit the most from this cha

Please list any formulas and show work for answers.  Please provide plausible explanations.  Thank you

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