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 223 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 236 workdays per year. (Round up your answer to the next whole number.) cent.nits ped the Ns pe r esti asted r the Cells

Explanation / Answer

Forecasted annual demand = 3* 60,000 = 180,000

Number of days = 236

Therefore, demand per day = 180,000 / 236 = 763

After productivity improvement, output per cell = 223

Therefore, number of cells required = 763 / 223 = 3.4, nearly 4

Therefore 4 cells willl be required

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