Madurai Electronic Manufacturing Enterprise $($MEME$)$ supplies various electronic

components to manufacturers of white goods such as Refrigerators, Washing Machines

etc. They supply these to the manufacturers on a just$-$in$-$time basis. The production

system is planned for a capacity of $100$ units per shift and currently engages its staff for

one shift per day. Because of the variation in the customers assembly operations, they

get orders ranging between $70$ units to $150$ units per day. It is the policy of MEME to

keep a minimum safety stock $($as ending inventory$)$ of $50$ units. The plant manager, Mr$.$

Siripu Shekhar is considering a policy to run a second shift the next day if inventory

falls below $50$ units at the end of the day.

the annual planning 

exercise of understanding how many second shifts should MEME account for? Assume

a starting inventory of $120$ units.

Answer rating: 100% (QA)

To determine how many second shifts MEME should account for annually you can calculate the number of ... View the full answer