A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capacityof 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvementssoon will increase output to 224 units per day. Annual demand is currently 60,000 units. It is forecasted that within two years, annualdemand will triple. How many cells will the company require to satisfy predicted demand under these conditions? Assume 242workdays per year. (Round up your answer to the next whole number.)Answer is complete but not entirely correct.3Cells

Annual demand = 60,000 unitsProduction capacity of one cell = 224 units per dayWorking days = 242…

Answered: A company manufactures a product using…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A recurring maintenance job in a factory is being done by a three-man crew. Due to the nature of the job and space limitations, it was observed that two of the men were idle 37% of the time; one of the men was also idle an additional of the time, and at any given time only one man was required. The men were each paid P24.00 per hour. Each time the job was performed a set of tools and equipment with a value equivalent to P36.00 per hour was used. If the three-men crew could complete the work in 5 hours, which crew size would be the most economical
A new highway is to be constructed. Design A calls for a concrete pavement costing $80 per foot with a 20-year life; four paved ditches costing $3 per foot each; and two box culverts every mile, each costing $9,000 and having a 20-year life. Annual maintenance will cost $1,800 per mile; the culverts must be cleaned every five years at a cost of $350 each per mile. Design B calls for a bituminous pavement costing $55 per foot with a 10-year life; three sodded ditches costing $1.45 per foot each; and four pipe culverts every mile, each costing $2,100 and having a 10-year life. The replacement culverts will cost $2,350 each. Annual maintenance will cost $2,900 per mile; the culverts must be cleaned yearly at a cost of $215 each per mile; and the annual ditch maintenance will cost $1.35 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 20-year period. Find the most economical design on the basis of AW and PW if the MARR is 6% per…
A toy firm produces drums sequentially on three machines- A, B, and C- with cycle times of three, four, and six minutes, respectively. a) Determine the optimum efficiency and output rates for adding one, two... six more machines b) Assume now that two identical lines are operating, each with machines A, B, and C. If new machines can be shared between the lines, how should one, two, and then three new machines be added? What are the resulting efficiencies and outputs of the two lines? Is it always best to equally share extra machines between the two lines?
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Deja Brew, Inc., produces and sells 1,000 pallets of tea. Selling price per pallet: $700 Variable cost per pallet: $100 Annual fixed costs: $20,000 How many units would Deja Brew, Inc., need to sell to make $10,000? Round to the nearest whole pallet.
Having too much capacity is just problematic as not having enough capacity. Select one: True False
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2 weeks', non- vesting sick leave per annum. Past experience suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year. The rest of the employees take no sick leave.Calculate the expected annual sick-leave expense for Dainty Ltd (on the basis of average salaries)
A loan processing operation at a local bank processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day. What is the utilization of the processing operation? Select one: a. 100.0% b. 87.5% c. 70.0% d. 80.0% Warranty expense, the cost that a business incurs for the repair or replacement of goods that has sold, is an example of which of the following? Select one: a. Internal failure cost b. Appraisal cost c. Prevention cost d. External failure cost
Answer format: Number: Round to: 2 decimal places.
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Knott's Industries manufactures standard and super premium backyard swing sets. Currently it has four identical swing-set-making machines, which are operated 275 days per year and 8 hours each day. A capacity cushion of 20 percent is desired. The following information is also known Annual Demand Standard Processing Time Average Lot Size Standard Setup Time per Lot a. Does Knott's have sufficient capacity to meet annual demand? Knott's does Standard Model 20,000 5min 50 30 min Super Premium Model 10,000 17 min 30 45 min have sufficient capacity to meet annual demand because 3 machines are needed. (Enter your response rounded up to the next whole number.) b. If Knott's was able to reduce the setup time for the Super Premium Model from 45 minutes to 30 minutes, would there be enough current capacity to produce 20,000 units of each type of swing set? If Knott's was able to reduce the setup time for the Super Premium Model from 45 minutes to 30 minutes, there would not be enough capacity to…

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