Question
The demand required for the production line is 81,515 units per day. The line is a serial line with stations 1-2-3-4 with station 3 having
The demand required for the production line is 81,515 units per day. The line is a serial line with stations 1-2-3-4 with station 3 having rework. Workstation 1 has scrap rate of 0.03 Workstation 2 has scrap rate of 0.06 Workstation 3 has scrap rate of 0.07 with rework at 0.86 success rate and a cost of $1.98 for each unit scheduled through rework. Workstation 4 has scrap rate of 0.04 Determine how many units should be scheduled into workstation number 1 to compensate for the scrap rates for each of the machines 1, 2, 3, 4 as well as rework at workstation 3; and then determine the total cost of rework going into station 3. What is the cost $$ of rework?
I have been given that the answer is 11885.2, but I need to see how to get there
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