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A production line makes 70 parts/hour. It runs for two 8-hour shifts per day. However, an average of one hour per shift is considered non-available
A production line makes 70 parts/hour. It runs for two 8-hour shifts per day. However, an average of one hour per shift is considered non-available working time (i.e., some historical downtime). The direct manufacturing cost is $40/part (during the first-pass). The first-pass-yield is 80%. From the non-conforming parts, 75% can be reprocessed into an acceptable product, and the rest is scrapped; the reprocessing cost is $20/part
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