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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

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 18 percent capacity cushion is best. The plan operates two-8 hour shifts, 5 days per week, and 52 weeks per year.

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