dolution

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%.

a. What is the firms effective capacity? [ Select ]

5636

6000

5700

6240

4900

b. What is the expected actual weekly output of scooters for this? company, based on effective capacity? [ Select ]

95

6000

5246

4959

5700

c. Which of the following is true? [ Select ]

Effective capacity is 6000 razor scooters

Action Motor Sports has achieved utilization goal of >=90%

Action Motor Sports should be able to fulfill average customer orders for 5800 motor scooters per week

Action Motor Sports has achieved utilization goal of >=75%

The maximum weekly theoretical capacity is 5600 razor scooters

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? [ Select ]

Yes, because design capacity is far enough over the demand of 10,000 to accommodate the order

Yes, but only if the company can decrease the downtime from 5% to 2%

No, because the utilization is below the goal of 75%

Yes, because the design capacity is above 9000

No, because the 5 % down time will prohibit the company from producing 10,000 razor scooters