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1) A manufacturing company received an order of 1000 units for a product. The pr

ID: 3198905 • Letter: 1

Question

1) A manufacturing company received an order of 1000 units for a product. The product requires 3 processing steps: sawing, drilling and bending. The scrap estimations based on historical data is P1: 0.01, P2:0.04 and P3: 0.02 respectively. Determine the required input size at the beginning of first operation to be able to satisfy the order. 2) In a 8-hour shift, a machined part has a standard machinery time of 2.2 min/part on a drilling machine. The machine will be operational 85% of the time. Due to the quality considerations, drilling speed of the machinery is adjusted to 90% of its standard performance. What should be the machine fraction to be able to produce 300 units at a single shift.

Explanation / Answer

The scrap estimation in three steps is: 0.01 , 0.04 and 0.02 respectively.

This means that, in each step, this much fraction of material is discarded as scrapped;
So to deliver 1000 units for a product, let us stay we start with an input size of 'x' units;

After first step: 0.01 x discarded and 0.99 x remains

After second step 0.04 (0.99x) discarded and 0.99x - (0.04*0.99x) remains = 0.9504 x remains

After third step, 0.02 (0.9504x) discarded and 0.9504x - (0.02*0.9504x) remains = 0.931392x

Thus, 0.931392x = 1000 final units
so x = 10000/ 0.931392 = 1073.66 ~= 1074 units

Thus, input should be 1074 units
Thus, to meet the demand, input should have 1020 units