Question: Consider a simple three - step manufacturing process as illustrated in the given figure. Assuming that the demand is 1,000 units, what is the required

Consider a simple three - step manufacturing

Consider a simple three - step manufacturing process as illustrated in the given figure. Assuming that the demand is 1,000 units, what is the required input to meet demand? Assume that the scrap cost is $5 at process 1,$10 at process 2 , and $15 at process 3 . The defective rates are 3%,5%, and 7% respectively. Compute the total scrap cost for the given system

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