A company manufactures a product using two identical machines. Each machine has a design capacity of250 units

Question:

A company manufactures a product using two identical machines. Each machine has a design capacity of250 units per day and an effective capacity of230 units per day. At present, actual output averages 200 units per machine, but the manager estimates that productivity improvements soon will increase output to 225 units per day'. Annual demand for the product is currently 50,000 units, but it is expected that within two years annual demand will triple. How many machines should die company plan to have to satisfy the forecasted demand? Assume 240 workdays per year.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

Question Posted: