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Baker Manufacturing Company forecasts the following demand for a product ( in thousands of units ) over the next five years. Year 1 2 3
Baker Manufacturing Company forecasts the following demand for a product in thousands of units over the next five years.
Year
Forecast Demand
Currently the manufacturer has eight machines that operate on a twoshift eight hours each basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are workdays in a year. Each manufactured good takes minutes to produce.
What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations.
unitsyear
Given the fiveyear forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number.
Year
Extra capacity needed units
Does the firm need to buy more machines? If so how many? When? If your answer is zero, enter Round your answers up to the nearest whole number.
Year
Additional machines needed
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