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Electronics Assembly Inc. is a contract manufacturer that assembles consumer ele

ID: 426354 • Letter: E

Question

Electronics Assembly Inc. is a contract manufacturer that assembles consumer electronics for a number of companies. Currently, the operations manager is assessing the capacity requirements as input into a bid for a job to assemble cell phones for a major global company. The company would assemble three models of cell phones in the same assembly cell. Setup time between the phones is negligible. Electronics Assembly Inc. operates two 8-hour shifts for 275 days per year.


a. Calculate total capacity required by line.

b. Determine the total operating time available.

c. Calculate the total number of assembly cells. (Round up your answer to the next whole number.)

Cell Phone Demand Forecast
(phones/year) Processing Time
(minutes/phone) Mars 26,000 16.2 Saturn 16,000 35.3 Neptune 16,500 38.5

Explanation / Answer

a) Total capacity required = SUM (Demand forecast * Processing time ) of three models

= 26000*16.2 + 16000*35.3 + 16500*38.5

= 1,621,250 minutes/year

b) Total operating time available = 275 days * 2 shifts * 8 hour * 60 minutes

= 264,000 minutes

c) Number of assembly cells = Total capacity required / Total operating time available = 1621250/264000 = 6.14 ~ 7   (rounded-up)

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