A company manufactures a product using machine cells. Each cell has a design cap

Question

A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 220 units per day. Annual demand is currently 50,000 units. It is forecasted that within two years, annual demand will triple. How many cells should the company plan to acquire to satisfy predicted demand under these conditions? Assume that no cells currently exist. Assume 245 workdays per year.

Explanation / Answer

Explanation:

Actual output will be 220 per day per cell;

245 Working days/year

Projected annual demand = 150,000

Annual capacity per cell = 220 units/day ×245 days/year = 53,900

Cells:150,000/53,900= 2.78 3 cells

if you think this helped do give a thumbs up else share your queries in comment section.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.