A manufacturer of a small appliance produces motors for the appliance using two identical processes. Each process

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A manufacturer of a small appliance produces motors for the appliance using two identical processes. Each process has a design capacity of 300 units per day and an effective capacity of 250 units per day. The actual output currently is an average of 220 units per day. The current annual demand for the motors is 60,000 units. The company’s production manager has undertaken process reengineering efforts that will increase actual output to 240 units per day. The company expects that the annual demand for the appliance, and hence, for the motors, will double in the next year. How many processes will the company require to satisfy the expected demand next year? Assume 250 working days a year.

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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