For output to equal forecasted demand, what should be the actual cycle time for this production?
A)32 seconds
B)38 seconds
C)40 seconds
D)76 seconds
E)152 seconds

Question

Quizplus · Accepted Answer

Actual cycle time = (Total production time available / Forecasted demand) 
= (8 hours x 60 minutes x 60 seconds) / (30,000 units) 
= 32,400 seconds / 30,000 units 
= 1.08 seconds per unit 
To produce the forecasted demand, the actual cycle time should be 1.08 seconds which is closest to option C, i.e. 40 seconds.

For Output to Equal Forecasted Demand, What Should Be the Actual