Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years: Used from book Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 30 minutes to produce. a. What is the capacity of the factory

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Business

Gunner Wallace

18 March, 06:40

Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years: Used from book Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 30 minutes to produce. a. What is the capacity of the factory

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Answers (2)

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Athena Fitzgerald · Answer 1

Capacity = 12880 units

Explanation:

Work days = 250 - 20 = 230 Shifts / day = 2 Hours / shift = 8 Machines working each time = 7

Total production time = 230 (2) (8) (7) = 25760 hours

Time required per good = 30 minutes or 1/2 hour

So, Total capacity = 25760 x 1/2

= 12880 units

Case Hardin · Answer 2

51,520 units

Explanation:

a. The computation of the capacity of the factory is shown below:

Capacity of the factory = (Number of workdays in a year - number of given days) * number of hours * number of shifts * number of machines * basis

= (250 days - 20 days) * 8 hours * 2 shifts * 7 * 2

= 51,520 units

We simply applied the above formula to determine the capacity of the factory