A production process consists of a three-step operation. The scrap rate is 16 percent for the first step and 11 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 final answer to the nearest whole number.) Cost

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A production process consists of a three-step operation. The scrap rate is 16 percent for the first step and 11 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 final answer to the nearest whole number.)
Cost
Transcribed Image Text:A production process consists of a three-step operation. The scrap rate is 16 percent for the first step and 11 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 final answer to the nearest whole number.) Cost
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