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

A company manufactures a product using machine

A company manufactures a product using machine

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 will the company require to satisfy predicted demand under these conditions? Assume 236 workdays per year. (Round up your answer to the next whole number.) Cells The following diagram shows a 4-step process that begins with Operation 1 and ends with Operation 4. The rates shown in each box represent the effective capacity of that operation. 13/hr. 12/hr. 15/hr. 16/hr. Operation 1 Operation 2 Operation 3 Operation 4 a. Determine the capacity of this process. Capacity per hour b. Which action would yield the greatest increase in process capacity: (1) increase the capacity of Operation 1 by 10 percent; (2) increase the capacity of Operation 2 by 10 percent; or (3) increase the capacity of Operation 3 by 12 percent? Action

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