Suppose a final assembly is produced by assembling two components. THE The first component, A, is produced internally and goes through three process steps, which are stamping, forging and machining, with scrap estimates of 10%, 15% and 25%, respectively. For every three produced units of component A, two are used in the final assembly and one is separate to meet spare parts needs. The second component, B, which is used exclusively in final assembly, is purchased from a supplier external and inspected on arrival; 2% do not pass inspection. A unit of the component purchased is required for each final assembly. The final assembly process produces 5% of scraps. Spare parts demands for component A and final Su assembly match to 1,000 and 5,000 units, respectively. How many input units are needed for produce component A, and how many units of component B should the firm buy?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Suppose a final assembly is produced by assembling two components. THE The first component, A, is produced internally and goes through three process steps, which are stamping, forging and machining, with scrap estimates of 10%, 15% and 25%, respectively. For every three produced units of component A, two are used in the final assembly and one is separate to meet spare parts needs. The second component, B, which is used exclusively in final assembly, is purchased from a supplier external and inspected on arrival; 2% do not pass inspection. A unit of the component purchased is required for each final assembly. The final assembly process produces 5% of scraps. Spare parts demands for component A and final Su assembly match to 1,000 and 5,000 units, respectively. How many input units are needed for produce component A, and how many units of component B should the firm buy?

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