What is the current capacity of the factory in terms of hours and product units? Given the resources demanded versus the resources available, calculate the utilisation percentages over the next two years. Is Climate Control under or over Capacity? Does the firm need additional production lines? Use calculations to justify your answer.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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Please calculate/answer the below questions: What is the current capacity of the factory in terms of hours and product units? Given the resources demanded versus the resources available, calculate the utilisation percentages over the next two years. Is Climate Control under or over Capacity? Does the firm need additional production lines? Use calculations to justify your answer.
Climate Control (Pty) Ltd forecasts the following demand for its most popular line of air
conditioning units, called the Temp X Pro.
Year
Forecast demand in units
(Temp X Pro's)
11 000
1
11 500
Currently, it has two production lines that operate on a two-shift (8 hours each) basis.
There are 260 work days in the year, but 15 days are set aside for scheduled maintenance.
Each Temp X Pro (product unit) takes 80 minutes to produce.
Transcribed Image Text:Climate Control (Pty) Ltd forecasts the following demand for its most popular line of air conditioning units, called the Temp X Pro. Year Forecast demand in units (Temp X Pro's) 11 000 1 11 500 Currently, it has two production lines that operate on a two-shift (8 hours each) basis. There are 260 work days in the year, but 15 days are set aside for scheduled maintenance. Each Temp X Pro (product unit) takes 80 minutes to produce.
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