Problem 10-18 A production process consists of a three-step operation. The scrap

Question

Problem 10-18 A production process consists of a three-step operation. The scrap rate is 13 percent for the first step and 8 percent for the other two steps a.lf the desired daly output is 482 units, how many units must be started to allow for loss due to scrap? (Do not round intermediate calculations. Round up your final answer to the next whole number.) Number of units [ ] b.lf the scrap rate for each step could be cut in half at every operation, how many units would this save in terms of the scrap allowance? (Do not round intermediate calculations. Round up your final answer to the next whole number.) Number of units ts a cost of $10 per unit, how much is it costing the company per day for the original scrap rate (Le the Part a scrap rate)? (Round your final answer to the nearest whole number. Omit the "$" sign in your response.) Cost $

Explanation / Answer

a: Desired daily output = 482

Let x be the actual input. 13% x will be wasted in the first step and in the second step 8% of ( 1-0.13x) and in the third step also 8% will be the scrap % and is 8%(0.08*(1-0.13x)

Thus 0.87x+(0.08)(0.87x)+0.08*0.08(0.87x)=482

Solving for x= 510

b:If scrap rate is half , then 6.5%, 8%, 8% will be the scrap %

=0.93.5*x+(0.04)*(0.93.5x)+(0.04*0.04)*(0.93.5x)= 482

Solving for x = 495

c:Cost for scrap =$10/unit.

Per day scrap = 510-482= 28

Thus cost for scrap =28*10 = $280

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.