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

Question

A company manufactures a product using two 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 241 workdays per year. (Round up your answer to the next whole number.) Cells

Explanation / Answer

Actual output will be = 228 per day per cell

Working Days = 241 Working days/ year

Projected annual demand = 80,000 * 3 = 240,000

Annual capacity per cell = 228 per day per cell * 241 Working days/ year

Annual capacity per cell = 54,948

Cells = 240,000/ 54,948

Cells = 5

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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