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Capacity: XYZ has 7 production lines with a max. capacity (Actual O/P) of 250,000 box of tea per month. During 2019, the capacity of the factory critically covered the market demand. However, in 2020, the company might face a problem to cover the expected demand. Thus, it seems critical to rethink their capacity for 2020. During the meeting, the operations manager proposed two capacity alternatives to increase their capacity. The first alternative is to buy a new production line. The second alternative is to continue outsourcing to a third party producer. The following table indicates the annual fixed and variable cost per unit of each alternative: Buy a new line Outsourcing Fixed cost LE 1,000,000 None Variable cost LE35/Box LE 40/Box Besides, there is a need to reconsider the use of the company resources while maintaining the same quality of their products. Accordingly, the operations manager proposed a process improvement initiative that reduces processing time for each box (the company operates 8 hr./day), so that output is increased by 10 %, but three additional workers required for each production line. Originally, 10 operators are needed to operate each line (7 production lines). Operator costs are LE 15/hour, and material input is LE 1.5/box and operating line cost LE 200/hr. Overhead is charged at 1.5 times direct labor cost (before and after the proposed initiative). As a member of the improvement team, you are required to assess the feasibility of the proposed initiative with respect to its effect on the productivity of the production lines (assume that the output is evenly distributed among the 7 lines).