Scheduled maintenance of equipment with no process

Assignment Help Business Management
Reference no: EM132320501

Amazon forecasts the following demand for a product (in thousands of units) over the next five years.

Year 1 2 3 4 5

Forecast Demand 44 47 49 53 58

The company outsources its manufacturing to Chip manufacturing. Chip has six machines that operate on a two-shift (8 hours each) basis. There are 240 workdays in a year and fifteen days per year are used for scheduled maintenance of equipment with no process output. Each manufactured unit takes 26 minutes to produce.

a. What is the capacity of the factory in units per year?

b. At what capacity levels (percentage of normal capacity) would the firm be operating over the next five years based on the forecasted demand? (Hint: Compute the ratio of demand to capacity each year.)

c. Does the firm need to buy more machines? If so, how many? When? If not, justify.

Reference no: EM132320501

Questions Cloud

Cooperative moves in the restaurant or hotel business : How could a family run business can the cooperative moves in the restaurant or Hotel business?
Describe the potential adverse supply chain : Describe the potential adverse supply chain consequences resulting from a security failure.
Unsuccessful operations forecasting : What is an example of successful and unsuccessful operations forecasting?
Support of supply chain planning process : How has the internet affected the way companies forecast in support of their supply chain planning process?
Scheduled maintenance of equipment with no process : There are 240 workdays in a year and fifteen days per year are used for scheduled maintenance of equipment with no process output.
Quality management practices in an organization : Analyze quality management practices in an organization and the impact it will have on its organizational effectiveness.
What field did you explore in the given class : "Reality provides us with fact so romantic that imagination itself could add nothing to them" -- Jules Verne. What field did you explore in this class.
New warehouse that will receive shipments : A company is deciding where to locate a new warehouse that will receive shipments from three suppliers: 1, 3, and 3.
When might a firm decide to insource or vertically : When might a firm decide to insource or vertically reintegrate? Identify one example and discuss the reasons behind the decision.

Reviews

Write a Review

Business Management Questions & Answers

  Meeting performance expectations

One of your customer service and sales representatives is consistently not meeting performance expectations. You have decided to terminate the representative.

  Issues comprehensively and coherently

What is your advice to the company to address all these issues comprehensively and coherently?

  What potential contracting problems exist on ebay

How does eBay create value? What potential contracting problems exist on eBay? How does eBay address these problems?

  Economies of scale and learning effects

Contrast and compare economies of scale and learning effects.

  Inflation-unemployment trade-off

Evaluate why policymakers face a short-run trade-off between inflation and unemployment. Evaluate why the inflation-unemployment trade-off disappears in the long run.

  Maslow developed a theory of motivation

1.Maslow developed a theory of motivation that emphasized and combination of psychological and personal needs, and combined physical and economic needs.

  Impact business and describe how it might come up

Provide an example of another tort that could impact business and describe how it might come up?

  Organizational culture can be changedchanging organization

organizational culture can be changedchanging organization culture also depends upon whether the current culture is

  Knowledge of behavioral styles

What are some strategies for eliminating service barriers by using your knowledge of behavioral styles?

  Illustrate what is contingency theory

Illustrate what is contingency theory? Illustrate what kind of organizations familiar to you has been successful or unsuccessful in dealing with contingencies from the external environment?

  Question about economic theory analysis

Discuss how does the Heckscher-Ohlin theory differ from Ricardian theory in describing international trade patterns?

  Strategies to encourage participative managementwhat are

strategies to encourage participative managementwhat are some of the strategies followed by organizations for

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd