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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 4 5

Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years.

Year 1 2 3 4 5
Forecast Demand 127 141 144 147 145

Currently the manufacturer has eight machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 30 minutes to produce.

  1. What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations.

    units/year

  2. Given the five-year forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number.

    Year 1 2 3 4 5
    Extra capacity needed (units)
  3. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number._______

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