What is the impact of including inspection operations

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The East West Corporation produces compasses that have a plastic cover. The plastic cover consists of 2 oz of clear plastic pellets. Four processes are required to produce these covers. Given the following scrap estimates and the information that 50% of the scrap maybe reworked, how many ounces plastic pellets should be required to produce 1000 covers? What is the impact of including inspection operations between manufacturing processing when determining scrap estimates?

Operation Percent Scrap

First 10%

Second 5%

Third 3%

Last 1%

Reference no: EM132468494

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