Consider Problem 2.13 where, in this case, each process is capable of rework. Given the information in
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Consider Problem 2.13 where, in this case, each process is capable of rework. Given the information in the following table, what is the input required to satisfy a demand of 1,000 units?
Process Defect Rate Rework Rate 1 3% 60%
2 5% 75%
3 7% 80%
Suppose that scrap costs are negligible, and rework costs are $2, $3, and $4, respectively.
Calculate the rework cost for producing the 1,000 units. What happens to the rework cost if the scrap rates on processes 1 and 3 are reversed? Does this result agree with that of Problem 2.13?
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Facilities Planning
ISBN: 9780470444047
4th Edition
Authors: James A. Tompkins, John A. White, Yavuz A. Bozer, J. M. A. Tanchoco
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