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Business, 05.12.2019 22:31 valles36

Acompany is currently producing a carpet shampooer that sells about 4,000 units per year. it takes 2 hours to produce the unit, but 8 hours to set up the line for that process. this device is produced in batches of 100. management is considering producing a second type of shampooer, for which it estimates that demand would 2,000 units per year, processing time would be 2.8 hours per unit, with a setup time of 16 hours per batch, and batches of 200. there are currently two machines dedicated to the first product, which could also be used by the new one. the plant works two eight-hour shifts per day for 250 days per year, and frowns on overtime. because of uncertainties in the introduction of the new product, the company would like to reserve a capacity cushion of 10%. if management decides to go with the new product, how do you recommend that they expand to meet expected demand?

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Acompany is currently producing a carpet shampooer that sells about 4,000 units per year. it takes 2...
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