Suppose that a final assembly is produced by assembling two components. The firs

Question

Suppose that a final assembly is produced by assembling two components. The first component, component A, is produced in­house and proceeded though three process steps, blanking, forging, and machining, with scrap estimates of 5%, 8%, and 5%, respectively. Two units of component A are used in each final assembly. The second component, component B, is inspected upon arrival 10% fail inspection. One unit of the purchased component is required for each final assembly. The final assembly process produces 5% scrap. The demand for the spare parts of component A and the final assembly are 500 and 5,000 units, respectively. How many scrap units of final assembly have been produced?

A. 1056

B. 835

C. 263

D. 158

E. None of them is correct.

Explanation / Answer

Demand for spare parts of component A = 500 units

demand for final assembly = 5,000 units

Scrap in blanking for A = 500 units*5% = 25 units.

Units left = 500 - 25 = 475. Scrap in forging = 475 units*8% = 38

units left = 475 - 38 = 437. scrap in machining = 437 units*5% = 22 (rounded)

units left = 437 - 22 = 415 units

For final assembly, 2 units of component A is required. Thus final assembly = 415 units/2

But 5% is scrap. So scrap = 5% *415/2 = 10 units.

So, the answer is option "e" - none of the above.

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