How many units would have to be produced for the investment

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Reference no: EM131453288

Question: The uptime efficiency of a 20-station automated production line is only 40%.The ideal cycle time is 48 sec, and the average downtime per line stop occurrence is 3.0 min. Assume the frequency of breakdowns for all stations is equal (pi = p for all stations), the downtime is constant, and the upper-bound approach is applicable. To improve uptime efficiency, it is proposed to install a storage buffer with a 15-part capacity for $14,000. The present production cost is $4.00/unit, ignoring material and tooling costs. How many units would have to be produced for the $14,000 investment to pay for itself?

Reference no: EM131453288

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