You have been asked to put together a capacity plan for a critical operation at the Surefoot Sandal Company. Your capacity measure is number of machines. Three products (men's, women's, and children's sandals) are manufactured. The time standards (processing and setup), lot sizes, and demand forecasts are given in the following table. The firm operates two 8-hour shifts, 5 days per week, 50 weeks per year. Experience shows that a capacity cushion of 5 percent is sufficient.

a. How many machines are needed?

b. If the operation currently has two machines, what is the capacity gap?

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Product Men's sandals Women's sandals Children's sandals TIME STANDARDS Processing (hr/pair) 0.05 0.10 0.02 Setup (hr/pair) 0.5 2.2 3.8 Lot Size (pairs/lot) 240 180 360 Demand Forecast (pairs/yr) 80,000 60,000 120,000