Question: Consider a three-step manufacturing process as illustrated in the given figure. Assuming that the demand is 1,500 units, what is the required input to meet

Consider a three-step manufacturing process as

Consider a three-step manufacturing process as illustrated in the given figure. Assuming that the demand is 1,500 units, what is the required input to meet the demand? The required input is the same if the scrap rates are reversed for the process 1 and 3 . The scrap cost is $8 for Process 1,$15 for Process 2 , and $25 for Process 3. Compute the total scrap cost for the given system and the system that the scrap rates are reversed. Which system would be preferred? (20 pts)

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