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 a14 percent capacity cushionis best. The plan operatestwo-8 hour shifts, 5 days per week, and 52 weeks per year.

Time Standards Demand Forecast Processing Setup Lot Size Unit Pessimistic Expected Optimistic (hr/unit) (hr/lot) (units/lot) A 0.05 1.4 50 14,000 20,000 23,000 B 0.3 4.7 90 9,000 13,000 19,000 C 0.1 8.3 120 16,000 24,000 37,000