Question

A company manufactures a product using machine cells. Each cell has a design capacity of 250 units perday and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, butthe manager estimates that productivity improvements soon will increase output to 225 units per day.Annual demand is currently 50,000 units. It is forecasted that within two years, annual demand will triple.How many cells should the company plan to acquire to satisfy predicted demand under these conditions?Assume that no cells currently exist. Assume 240 workdays per year. (Round your answer to the nextwhole number.)

Answer 1

Answer:

3 cells

Explanation:

The demand in 2 years is gotten;

= 50000 * 3

= 150,000

Per Day output per cell is 225 units, in 240 workdays, therefore the output is gotten as;

225 * 240 = 54,000

To get the number of Cells;

= 150000/54000= 2.8

Rounded up to the next whole number we have 3 Cells.