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2 . 2 4 Suppose that a final assembly is produced by assembling two components. The first component, component A , is produced in -

2.24 Suppose that a final assembly is produced by assembling two components. The first component, component A, is produced in-house and proceeds through three process steps, blanking, forging, and machining, with scrap estimates of 10%,15%, and 25%, re- spectively. For every three units of component A produced, two are used in the final as- sembly, and one is set aside to meet spare parts requirements. The second component, component B, used exclusively in the final assembly, is purchased from an outside ven- dor and is inspected upon arrival; 2% fail inspection. One unit of the purchased compo- nent is required for each final assembly. The final assembly process produces 5% scrap. The demand for the spare parts of component A and the final assembly are 1000 and 5000 units, respectively. How many units of input are required to produce component A, and how many units must the company buy of component B?

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