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Action Motor Sports Company uses a machine that can produce 1 0 0 razor scooters per hour. The firm operates 1 2 hours per day,

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 achieved an efficiency level for the wheels of 87%. The company's internal utilization goal is 75%.
Operating days 5 week
Production 100/hour
Daily Prod. Time 12 hours/day
Down Time 5%
Efficiency Level 87%
Utilization Goal 75%
Complete calculation inside highlighted question cell
a. What is the firms effective capacity? [effective]
b. What is the expected actual weekly output of scooters for this company, based on effective capacity? [Blank1]
c. Which of the following is true? [Blank2]
d. If the company received an order for 10,000 razor scooters per week and switched to a 18-hour daily operation, is it likely they would be able to fulfill demand, based on effective capacity? [Blank3]

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