If the desired daily output is 458 units, how many units must be started to allow for loss due to scrap? (Do not round intermediate calculations. Round up your final answer to the next whole number.)

Complete question:

Production process consists of a three step operation. Scrap rate is 19% for the first step and 11% for the other two steps.

If the desired daily output is 458 units, how many units must be started to allow for loss due to scrap? (Do not round intermediate calculations. Round up your final answer to the next whole number.)

784 units

Explanation:

Given that:

Scrap rate at first step = 19%

Scrap rate at second step = 11%

Scrap rate at third step = 11%

Desired output unit = 458

After first step,

Material left= (100% - 19%) = 81%

After second step,

Material left = (100% - 11%) = 89%

After third step :

Material left = (100% - 11%) = 89%

Therefore, to compensate for scrap in the first step and attain desired output unit:

Units that must be started :

Desired output unit / (81%)*(89%)*(89%)

458 / (0.81)*(0.89)*(0.89)

458 / 0.583929

= 784.34193 units

= 784 units

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