A company produces three different control units. Each of these units must be processed by a machine that is considered as their process bottleneck. The following table provides the time standards at the bottleneck, lot sizes, and demand forecasts for the three units. Due to demand uncertainties, the manager has obtained three demand forecasts (pessimistic, expected, and optimistic). The manager believes that a 12 percent capacity cushion is best. The plan operates two-8 hour shifts, 5 days per week, and 52 weeks per year.

	Time Standards			Demand Forecast
Unit	Processing (hr/unit)	Setup (hr/lot)	Lot Size (units/lot)	Pessimistic	Expected	Optimistic
A	0.06	1.4	40	14,000	20,000	22,000
B	0.2	4.4	70	11,000	14,000	20,000
C	0.09	8.4	120	18,000	23,000	37,000

How many machines are required to meet the minimum (pessimistic) demand? Answer in the whole number. The company plans on adopting an expansionist strategy.

2. How many machines are required to meet the expected demand if they plan on adopting an expansionist strategy? Show all your work. Give your final answer in a whole number.

3. How many machines are required to meet the maximum (optimistic) if they plan on adopting an expansionist strategy? Show all your work. Give your final answer in a whole number.