Question

Action Motor Sports Company uses a machine that can produce 100 razor scooters per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the machines will have to be down 5% of the available time. Based on experience with other products produced during preventive maintenance, the firm expects to achieve an efficiency level for the wheels of 95%. Last week's production was 5,640 scooters, some 60 units below effective capacity

a. What is the expected weekly output of wheels for this company?

b. Which of the following is NOT true? 

c. If the company received an order for 9,000 razor scooters per week and switched to a 24 hour operation, is it likely they would be able to fulfill demand? 

Answer 1