Hi experts,
I have a scenario in jewelry industry. We buy the gold bullion from different vendors. The vendors are expected to supply gold of 99.5 % purity (24 carat gold). At the time of procurement there will be a quality inspection. 24 K gold is accepted, whereas less than 24K gold is accepted at a lower price. There are no rejections. Impure gold is then sent for purification process. Please suggest how to map this in QM.
Thanks in advance