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 222 units per day. Annual demand is currently 60,000 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. (Round up your answer to the next whole number.) please show work

Explanation / Answer

Actual output will be 222 units per day
working days/year 245
projected annual demand=60,000*3=180,000
annual capacity per cell= 222 units/day*245 days/year
annual capacity per cell= 54,390
cells = 180,000/54390
cells = 3.31 cells

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