Question: Capacity - PracticeA company manufactures a product using two machine cells. Each machine cell has a design capacity of 280 units per day and an
Capacity - PracticeA company manufactures a product using two machine cells. Each machine cell has a design capacity of 280 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 will increase efficiency to 95 percent before the end of the current year. Annual demand is currently (i.e. in Year 01)70,000 units. It is forecasted annual demand will increase by 25 percent per year each of the next two years (ie., Year 1 and Year 2). How many additional machine cells should the company plan to acquire each year (Year 1 and Year 2) to satisfy predicted demand under these conditions? Assume 240 working days per year. Numeric 3 pointsWhat will be the new average number of units produced per machine per day at the end of Year 0? Round your answer to two decimal placei.AnswerFill in the Blunk 4 points$What witt the serict demand be in Year 1 and in Year 2?Year 1-q, units/yearYear 2q, units/year Numeric 2 pointsHow many machines (rounded to two decimal places) will be needed in Year 1?Answer Numeric 2 pointsHow many machines (rounded to two declmal places) will be needed in Year 2?Answer42Fill in the Blank 3 pointsEnter numeric values (ile,1,2,3, etc) in the following:The company will need to purchas machine(s) in Year 1 and machine(s) in Year 2.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
