Discuss the below:
Q: A production process consists of a three-step operation. The scrap rate is 20 percent for the first step and 10 percent for the other two steps.
a. If the desired daily output is 455 units, how many units must be started to allow for loss due to scrap?
b. If the scrap rate for each step could be cut in half at every operation, how many units would this save in terms of the scrap allowance?