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A firm produces two products, Prod A and Prod B, using the same type of machines. The firm would like to determine capacity requirements
A firm produces two products, Prod A and Prod B, using the same type of machines. The firm would like to determine capacity requirements for the next year. Processing times and forecast demands for the next year of each product are as follows: Product Processing time Forecast demand Prod A 2 hour/unit Prod B 6 hours/unit 145 units 100 units The firm operates 8 hours a day, 5 days a week, and 50 weeks a year. Changeover time from one product to another is negligible. Suppose you have chosen Prod A as the standard product. What is the capacity requirement for the next year in terms of number of units of the standard product? Provide only the number (do not put "units" in your answer).
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