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Calculating product yield of file cabinets

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The Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold through catalogs. The company initiates production of 150 cabinet packages each week. The percentage of good-quality cabinets averages 83% per week, and the percentage of poor-quality cabinets that can be reworked is 60%.

a. Determine the weekly product yield of file cabinets.

b. If the company desires a product yield of 145 units per week, what increase in the percentage of good-quality products must result?

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Solution Preview

a. Determine the weekly product yield of file cabinets.

Number of units started in production=I=150
Percent of good quality cabinets=%G=83%
Percent of defective ...

Solution Summary

Solution describes the steps to calculate weekly product yield of file cabinets. It also calculates the increase in percentage of good quality products to meet the objective of given product yield.