An operator is currently operating two machines. Because of an increase in sales the company wishes to have the operator run the maximum number of machines without having machine idle time. The union opposes such a move, arguing that the operator should have idle time during a cycle. After considerable controversy, the company and union agree the operator will handle the maximum number of machines that will allow the operator to be idle at least 3 minutes per cycle. A time study is made, and the following standard times are determined for a cycle under the existing assignment of two machines:

Activity	Time
Operating Unload-Load-M1 (l)	2.00
Inspect and pack the part and walk to M2 (w)	1.00
Don't wait for M2 to stop	3.50
Running Unload-Load-M2 (l)	2.00
Inspect and pack the part and walk to M1 (w)	1.00
Wait for M1 to stop	3.50

a) Based on the time-study data and the agreement between the company and the union, how many machines should be assigned the operator?

b) What is the added cost per unit produced due to the union demand? Assume that the operator costs 10 TL per hour and each machine costs 30 TL per hour.

c) Calculate the hourly opportunity cost created by union demand when it is known that the unit product is sold for 10 TL and the demand is greater than the supply.

d) Calculate the change in the opportunity cost of the union effect if the cost of transfer to stock is 1.5 TL per unit and the cost of not meeting the demand (penalty) is 2 TL in the case of an hourly demand of 16.