Model: Loss in each process
The product AA’ is produced by passing the chemical CC’ through four processes, where the output of the earlier process becomes the input of the subsequent process.
The loss of materials expressed as a % of input is as follows:
Process I – 20%, Process II – 10%, Process III –and Process IV –
The material lost in each process does not have any resale value.
You are required to calculate
- The cost per kg of product AA’ if the cost of chemical C’ is Rs. 10 per kg
- The capacity of the process plants for processes I, II, III and IV to hold material for processes expressed in metric tonnes of input for each process if the two conditions are to be fulfilled: (1) 25% of the space is to be allowed for chemical reactions and (2) the output of product XX’ from the final process IV is expected to be 10 metric tonnes