Company has two types of machinist

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Reference no: EM131152387

 A company has two types of machinist who are assigned to produce a part. The required daily output is 2400 units for an 8 hour work day. The type 1 machinist is paid at a higher rate of $20/hour and can produce 30 units/hour with a defect rate of 1%. The type 2 machinist has a lower throughput rate of 24 jobs/hour with a defect rate of 4%. The type 2 machinist is paid $16/hour. Each reject requires a rework cost of $4/unit. Ten units of type 1 machinist and 12 units of type 2 machinists are available. Determine the optimal assignment of machinist which will minimize the daily production cost. 

Reference no: EM131152387

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