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kkpowell
kkpowell
12.02.2020 • 
Mathematics

Consider a machining processing unit. After component processing, good parts are sent to packaging and shipping, and defective parts are sent to a Rework station. After rework, good parts are sent to Packaging and shipping, while bad parts are sent to a Scrap station for disposal. Only 20% of the parts reworked can be recovered as good parts. The processing and Rework stations have a yield of 70% and 30%,respectively. The costs incurred per unit to process a part at the Processing station, Packaging, Rework
and Scrap stations are $30, $10, $20 and $0, respectively.

a. Draw the material process flow diagram.
b. Determine the number of good parts or yield. Assume you are starting out with 1000 units.
c. What is the scrapped amount?
d. What is the cost per good unit?

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