A company that manufactures paving material for driveways and parking lots expects the following demand for its product for the next four weeks.

Week number 1 2 3 4 Material (tons) 40 80 60 70 The company’s labor and machine standards and available capacities are as follows.

Labor Machine Production standard (hours per ton) 4 3 Weekly production capacity (hours) 300 200

a. Determine the capacity utilization for labor and machine for each of the four weeks.

b. In which weeks do you foresee a problem? What options would you suggest to resolve any problems? What costs are relevant in making a decision on choosing an option?

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