A production process consists of a three-step operation. The
scrap rate is 10 percent for the first step and 6 percent for the
other two steps.
a. If the desired daily output is 450 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. If 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?
c. If the scrap represents a cost of $10 per
unit, how much is it costing the company per day for the original
scrap rate (i.e. the Part a scrap rate)? (Round your answer to the
nearest whole number. Omit the "$" sign in your
response.)
Cost?
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