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 228 units per day. Annual demand is currently 80,000 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 241 workdays per year. (Round up your answer to the next whole number.)

Explanation / Answer

Annual demand = 80,000

Workdays in an year = 241

Demand per day = Annual demand/Workdays in an year = 80000/241 = 332

Estimated output from a cell in day = 228

Number of cells required = Demand per day/Effective output per day from a cell = 332/228 = 1.46

Round off = 2 cells

Ans 2

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