4 15 You own a firm that produces blenders and coffee machines. Detailed information about demand as well as other important details are provided in the following table. The company works 250 days every year and operates 2 shifts, each of which covers 8 hours. If a 25 percent capacity cushion is maintained, how many machines does the company need next year to fully cover the demand? Blenders Coffee machines Demand forecast (units/yr) 4,000 12,000 150 Batch size (units/batch) 80 Processing time (ht/unit) 2.5 Setup time (hr/batch) 18 2.0 24 O More than 14 machines O 13 machines 12 machines 14 machines 5 15 Calculate the capacity cushion for a bread-making facility that currently produces 115 pounds of bread daily, whereas the actual facility's capacity is 134 pounds of bread. O Not enough information O 86% O 14% O 100% The following manufacturer produces two types of products: Product A and Product B using three stations. The flowchart provides each product's price, variable cost, weekly demand, and processing time per unit at each station. Each workstation is staffed by a worker who is dedicated to work on that workstation alone and is paid $18 per hour. The plant operates 40 hours a week. Overhead costs are $2,200 per week. Under the bottleneck approach, what the production of Product A and Product B should be? Also, what is the profitability of this method? Product A Variable cost: $15 Step 1: Station A (24 minutes) Step 2: Station C (14 minutes) Step 3: Station B (15 minutes) Product A Price: $61 Demand: 61 units Product B Variable cost: $10 Step 1: Station C (13 minutes) Step 2: Station A (11 minutes) Step 3: Station B (23 minutes) Product B Price: $70 Demand: 70 units O Product A: 31; Product B: 70; Profitability: $2,830 O Product A: 61; Product B: 64; Profitability: $2,286 O Product A: 41; Product B: 70; Profitability: $1,681 O Product A: 61; Product B: 61; Profitability: $2,106 Product A: 61; Product B: 66; Profitability: $2,467