Produce to satisfy predicted demand under these conditions

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Reference no: EM132302751

A company manufactures a product using two machine cells. Each cell 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 cell, but the manager estimates that productivity improvements soon will increase output to 222 units per day. Annual demand is currently 60,000 units. It is forecasted that within two years, annual demand will triple. How many cells should the company plan to produce to satisfy predicted demand under these conditions? Assume 245 workdays per year. (Round up your answer to the next whole number.)

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Reference no: EM132302751

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