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Madurai Electronic Manufacturing Enterprise ( MEME ) supplies various electronic components to manufacturers of white goods such as Refrigerators, Washing Machines etc. They supply these

Madurai Electronic Manufacturing Enterprise (MEME) supplies various electronic
components to manufacturers of white goods such as Refrigerators, Washing Machines
etc. They supply these to the manufacturers on a just-in-time basis. The production
system is planned for a capacity of 100 units per shift and currently engages its staff for
one shift per day. Because of the variation in the customers assembly operations, they
get orders ranging between 70 units to 150 units per day. It is the policy of MEME to
keep a minimum safety stock (as ending inventory) of 50 units. The plant manager, Mr.
Siripu Shekhar is considering a policy to run a second shift the next day if inventory
falls below 50 units at the end of the day.
the annual planning 
exercise of understanding how many second shifts should MEME account for? Assume
a starting inventory of 120 units.

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