2.13 Consider a simple three-step manufacturing process as illustrated in the given figure. Assuming thatdemand is 1,000 units, what is the required input to meet demand? You'll note that the required input isthe same if the scrap rates are reversed for processes 1 and 3. Assume that the scrap cost is $5 at process1, $10 at process 2, and $15 at process 3. The defective rates are 3%, 5%, and 7%, respectively. Computethe total scrap cost for the given system and the system where the scrap rates are reversed. Which systemwould be preferred?11d₂ = 3%2d₂ = 5%2.14 Consider Problem 2.13 where, in this case, each process is capable of rework. Given theinformation in the following table, what is the input required to satisfy a demand of 1,000 units?ProcessDefect RateRework Rate3%35%d₂ = 7%60%75%80%237%Suppose that scrap costs are negligible, and rework costs are $2, $3, and $4, respectively. Calculate therework cost for producing the 1,000 units. What happens to the rework cost if the scrap rates onprocesses 1 and 3 are reversed? Does this result agree with that of Problem 2.13?

Given data: Defect rate for Process-1 (d1) = 3% Defect rate for Process-2 (d2) = 5%Defect rate for…

Answered: 2.13 Consider a simple three-step…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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. Baskin-Robbins (BR) has a line that produces half-gallon ice cream packs. All the stations inthis line are single-machine and the line is nearly balanced. Suppose that BR hired you as theproduction manager to evaluate the performance of the line. You have estimated that thebottleneck rate to be 2,337 packs per 19-hour day and the raw process time to be 30 minutes.The actual production rate of this line is 1,900 packs per day with the average cycle time of 2.9hours.(a) Estimate the average WIP for this line:WIP: ______________(b) Compare the performance of this line to the minimum expected performance:THMEP : ______________ CT MEP: ______________
You are the operations manager for a production company. You are given the technical rate of substitution between factors X2 and X1 as -4. If you will like to produce the same output but you want to decrease the use of X1 by 2 units since it cost more than X2 to acquire, how many additional units of X2 will be required?
Tribal Systems, Inc., is opening a new plant and has yet todecide on the type of process to employ. A labor-intensiveprocess would cost $10,000 for tools and equipment and$14 for labor and materials per item produced. A more automated process costs $50,000 in plant and equipment buthas a labor/material cost of $8 per item produced. A fullyautomated process costs $300,000 for plant and equipmentand $2 per item produced. If process selection were basedsolely on lowest cost, for what range of production wouldeach process be chosen?
A company manufactures 1,500,000 units of a product yearly. A new design of the productwill reduce materials cost by 20% but will increase processing cost by 8%. If materials cost is₱10.00 per unit and processing will cost ₱0.50 per unit, how much can the company afford topay for the preparation of the new design and making changes in equipment?
The following processes - Tameka, Tamia, and Christian - have the following cost structure: Show all work in Excel with formulas Process Fixed Cost per Year Variable Cost per Unit Tameka $120,000 $3.00 Tamia 90,000 4.00 Christian 80,000 4.50 a. What is the most economical process for a volume of 8,000 units? b. How many units per year must be sold with each process to have annual profits of $50,000 if the selling price is $6.95 per unit? c. What is the break-even volume for each process?
The design capacity, effective capacity and efficiency for a car licensing operation are shown in the following table: Process Design capacity Effective capacity Efficiency Document checking 145,000 128,000 0.95 License production 1,250,000 900,000 0.15 Distribution 165,000 160,000 0.75 What are the expected output levels for each process? What are the utilization rates for each process?
H3. Weber Optical, an eyeglass manufacturer, pays employees an incentive based on the average amount of work completed per processing 20 invoices per hour. An employee who processes 30 invoices would earn $15 per hour. Hence, Weber Optical pa many invoices an employee processes per hour. Which type of incentive pay does this scenario illustrate? O 1. rising differential 2. straight commission plan 3. straight piecework plan 4. standard hour plan Show proper step by step calculation
2-The company is developing a new product that will incorporate subassemblyC. As part of the development process, a manufacturing testrunwill be conducted, requiring an extra 500 subassembly C’s per week.What is the earliest week this extra production can be added while stillmaintaining the inventory requirements of all components?
Tribal Systems, Inc., is opening a new plant and has yet todecide on the type of process to employ. A labor-intensiveprocess would cost $10,000 for tools and equipment and $14 for labor and materials per item produced. A more au-tomated process costs $50,000 in plant and equipment but has a labor/material cost of $8 per item produced. A fullyautomated process costs $300,000 for plant and equipmentand $2 per item produced. If process selection were basedsolely on lowest cost, for what range of production wouldeach process be chosen?
The one in bold, I already sold. Spartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $340,000 of fixed cost and add $40 of variable cost to each casting Spartan produces. The second process has fixed costs of $100,000 and adds $70 of variable cost per casting. a. What is the break-even quantity beyond which the first process is more attractive? The break-even quantity is 8000 castings. b. What is the difference in total cost if the quantity produced is 5,000? The total cost of process 1 is greater. Find the difference in total cost?
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Please to use 450 as daily output desired and 560 minutes as total time available per day for question b in scenario below Mr. John produces a special type of shoes on an assembly line. The process involves eight different tasks. Mr. John would like to increase productivity on this line and asked you for some assistance. He would like to balance the assembly line in order to reduce idle time and increase efficiency.a. What information would you need in order to demonstrate to Mr. John how to balance the assembly line? b. Setup an example that will be used to demonstrate to Mr. John how to balance the line. c. Using the example that you setup in “b” above, demonstrate to Mr. John how to balance the line using the LOT heuristics. d. Based on the example above, calculate the efficiency of the line.

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