Questions 911 In a simple four step manufacturing process th
Solution
9)
Input to process 4 = 1000/(1-5%) = 1052.6
Input to process 3 = 1052.6/(1-5%) = 1108
Input to process 2 = 1108/(1-4%) = 1154.2
Input to process 1 = 1154.3/(1-3%) = 1190
Required input to the first process to meet this demand = 1190
10)
Scrap out of process 1 = 1190*3% = 35.7
Scrap out of process 2 = 1154.3*4% = 46.2
Scrap out of process 3 = 1108*5% = 55.4
Scrap out of process 4 = 1052.7*5% = 52.64
Total scrap cost = 35.7*5 + 46.2*6 + 55.4*7 + 52.64*10 = $ 1370
11) Machines needed for process 1 = (1190 units * 5 minutes) / (8 hours * 60 minutes per hour * 80% efficiency * 90% reliability) = 17.22
Machines needed for process 2 = (1154.3 units * 6 minutes) / (8 hours * 60 minutes per hour * 80% efficiency * 90% reliability) = 20.04
Machines needed for process 3 = (1108 units * 8 minutes) / (8 hours * 60 minutes per hour * 80% efficiency * 90% reliability) = 25.65
Machines needed for process 4 = (1052.7 units * 10 minutes) / (8 hours * 60 minutes per hour * 80% efficiency * 90% reliability) = 30.46
