How many machines should the company plan

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A company manufactures a product using two identical machines. Each machine has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per machine, but the manager estimates that productivity improvements soon will increase output to 225 units per day. Annual demand for the product is currently 50,000 units, but it is expected that within two years annual demand will triple.

How many machines should the company plan to have to satisfy the forecasted demand? Assume 240 workdays per year. (Round the final answer to the next whole number.)

Reference no: EM132394787

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