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A company manufactures a product using two machine cells. Each cell has a design capacityof 250...

A company manufactures a product using two machine cells. Each cell has a design capacityof 250 units per day and an effective capacity of 230 units per day. At present, actual outputaverages 200 units per cell, but the manager estimates that productivity improvements soonwill increase output to 225 units per day. Annual demand is currently 50,000 units. It is forecastedthat within two years, annual demand will triple. The company could produce at the rateof 400 per day using available capacity. How many cells should the company plan to produceto satisfy predicted demand under these conditions? Assume 240 workdays per year.

 

Aug 01 2020 View more View Less

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