Question: this question is from operational research subject 7. There is a manufacturing unit. In this unit, there is an automated machine which can manufacture a

this question is from operational research

this question is from operational research subject

7. There is a manufacturing unit. In this unit, there is an automated machine which can manufacture a product in batches of three items. The selling price is Rs. 20 and the production cost is Rs. 10 per item. Before each batch is produced, the machine may be adjusted by a skilled mechanic at a cost of Rs. 16 per batch. If the machine is so adjusted, there will be no defectives in the batch. If it is not adjusted, some items may be defective. On the basis of past experience, the probability distribution of the number of defectives is estimated as follows: Number of defectives in batches of 3 items Probability 0 0.40 1 0.30 2 0.15 3 0.15 Defective items may be sold as scrap for Rs. 5 each, or may be reprocessed at the following cost schedule: Number of reprocessed items Total reprocessing cost (in Rs.) 1 8 2 16 3 24 Reprocessed items can be sold as good items. Should the machine be adjusted before each batch is produced? (10) 7. There is a manufacturing unit. In this unit, there is an automated machine which can manufacture a product in batches of three items. The selling price is Rs. 20 and the production cost is Rs. 10 per item. Before each batch is produced, the machine may be adjusted by a skilled mechanic at a cost of Rs. 16 per batch. If the machine is so adjusted, there will be no defectives in the batch. If it is not adjusted, some items may be defective. On the basis of past experience, the probability distribution of the number of defectives is estimated as follows: Number of defectives in batches of 3 items Probability 0 0.40 1 0.30 2 0.15 3 0.15 Defective items may be sold as scrap for Rs. 5 each, or may be reprocessed at the following cost schedule: Number of reprocessed items Total reprocessing cost (in Rs.) 1 8 2 16 3 24 Reprocessed items can be sold as good items. Should the machine be adjusted before each batch is produced

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