Originally Posted by MasterBlaster
To find the true sweet spot for salary versus crap you need to normalize the salary by the number of crap incidents per week.
when you do that you'll find the peak in the curve at which salary you can maximize dollars while minimizing crap incidents.
Mathematically, to find the sweet spot take the (1st) derivative of the crap-salary distribution. Then check all small values of this computed function at the original crap-salary distribution. The largest normalized salary-crap point indicated by a nominaly low (1st) derivative is then your optimal operating goal.
Good luck Big-Nick....
This tape will now self destruct in 10 seconds.....
Sounds like a typical engineering analysis that assumes that incoming crap is deterministic and not stochastic. You have to do a monte carlo analysis of the probability of excessive crap occurring within the key time period. You then have to do a leveraged functional root cause analysis to determine if you can shift the crap elsewhere when it arrives.